If you owe back IRS Payroll Taxes, the IRS can and will be very aggressive in its collection attempts. And the penalties the IRS can assess to a liability can drastically increase the amount owed in a very short period of time. Further, not only is your business at risk, but you may be personally liable for any or all IRS Payroll Taxes owed as well (via Trust Fund Recovery Penalties).
Understand your options and receive a tax consultation today. We’ll conduct a tax analysis based on your specific situation and present available solutions for consideration.
- Analyze your financial situation and help you determine the best course of action to deal with any late payroll taxes and penalties incurred.
- Ensure your balance is minimized through appropriate tax resolution measures prior to IRS negotiation.
- Submit appropriate documentation to the IRS and negotiate your lump sum payment amount and/or payback period.
- Handle all IRS communications on your behalf.
Q. When are payroll tax penalties incurred?
A. Penalties for payroll taxes in arrears begin to accrue as soon as your tax deposits are deemed late by the IRS. You should be familiar with your deposit schedule (semiweekly, monthly or quarterly). Paying on time is one part of your tax obligations. The other parts include paying the full amount of the payroll taxes owed and using the correct payment method. Failure to comply with either of these parts may result in penalties.
Q. Will the IRS waive or reduce my payroll tax penalties?
A. Possibly. We will work with you to determine whether you can qualify for a first-time penalty abatement waiver; or we can work to prove you had reasonable cause for non-compliance. We recommend you Schedule a Consultation with us to determine whether penalty abatement or reduction is an option for your situation. We do not recommend contacting the IRS on your own.
Q. What interest rate is charged to payroll taxes in arrears?
A. The interest rate on late-payment of payroll taxes has been around 4% in recent quarters. Interest will continue to accrue on your late tax payments until you pay the amount due in full.
Q. What is the cost of your services to resolve IRS issues associated with late payroll taxes?
A. Our IRS tax resolution fees are based on our flex-fee structure, and all costs are pre-approved by you when you decide to hire us. We offer payment plans, if needed, and set our fees so you do not have to worry about unexpected legal bills. There are no surprises, no add-ons. Because every situation is different, we recommend you Schedule a Tax Consultation so we can discuss your case in detail.
A. Penalties for payroll taxes in arrears begin to accrue as soon as your tax deposits are deemed late by the IRS. You should be familiar with your deposit schedule (semiweekly, monthly or quarterly). Paying on time is one part of your tax obligations. The other parts include paying the full amount of the payroll taxes owed and using the correct payment method. Failure to comply with either of these parts may result in penalties.
Q. Will the IRS waive or reduce my payroll tax penalties?
A. Possibly. We will work with you to determine whether you can qualify for a first-time penalty abatement waiver; or we can work to prove you had reasonable cause for non-compliance. We recommend you Schedule a Consultation with us to determine whether penalty abatement or reduction is an option for your situation. We do not recommend contacting the IRS on your own.
Q. What interest rate is charged to payroll taxes in arrears?
A. The interest rate on late-payment of payroll taxes has been around 4% in recent quarters. Interest will continue to accrue on your late tax payments until you pay the amount due in full.
Q. What is the cost of your services to resolve IRS issues associated with late payroll taxes?
A. Our IRS tax resolution fees are based on our flex-fee structure, and all costs are pre-approved by you when you decide to hire us. We offer payment plans, if needed, and set our fees so you do not have to worry about unexpected legal bills. There are no surprises, no add-ons. Because every situation is different, we recommend you Schedule a Tax Consultation so we can discuss your case in detail.
HELPFUL RESOURCES
Settling Payroll Taxes ▸
Dealing with an IRS Audit ▸
Form 4180 – TFRP Interview ▸