Owning a business should be a step towards financial independence, but if you owe payroll taxes to the IRS, your dream business could become a nightmare.
940/941 payroll tax representation
When payroll is submitted, the 940/941 withholdings are supposed to be remitted to the IRS within seven business days. If the IRS doesn’t receive the money in time, they will act quickly and take aggressive action against you, other members of the business, and the business itself, in order to square the debt. This action could include heavy fines as well as shutting down your business for good.
Payroll taxes are the wages an employer is responsible for withholding from an employee’s paycheck. A few common examples of payroll taxes are:
- Social security tax
- Medicare tax
- Federal income tax
Whether a business is small or large, it is required to hold payroll taxes. As a result, almost every business can benefit from payroll tax representation.
Forcible business shutdown and personal liability for business debts
When a business owes payroll taxes, the case is assigned to a revenue officer whose job it is to collect the money. They have the authority to intercept and confiscate all the receivables from the business to apply towards the tax debt, as well as shut your business down. In the event the tax debt is still not satisfied, the revenue officer will hold anyone that is financially responsible for the business personally liable for the tax debt.
TFRP (Trust fund recovery penalty) Assessment
If your business is already closed, the revenue officer has the authority to assess every person in the business who held any fiduciary responsibility. This means that principle owners, executives, as well as employees in a fiduciary role, will be assessed a penalty of 45 percent of the total debt owed by the business.
Key Tax Group protects you and your business from IRS action
Don’t let the IRS turn your business into a nightmare. Key Tax Group can prevent your business from being forced to close its doors and establish tax debt resolutions for the company’s debt as well as for individuals who have had penalties assessed against them.
At Key Tax Group, we understand the high stakes and urgency surrounding payroll tax debt relief. Our tax debt relief firm has both the accounting background and extensive experience in tax law and code to help prevent your business from being shut down and heavy penalties being assessed against you. Even if your business is closed, it’s important to have protection against your personal assets, bank accounts, and sources of income. To find out more about how Key Tax Group can protect you and your business from IRS action, contact our office today for your free initial consultation.