How to Deal With IRS Payroll Tax Problems

You run a business. Your sales have decreased, profits were down and cash flow has turned negative. You're in short of cash to pay your bills/vendors and your payroll tax deposit is due this week as well. There will be a temptation for you to hold paying for 941 employment taxes and pay your employees only their net pay. You want to use that tax money to pay most of your bills. Since the IRS looks far away from your world of business, so why not forget about them? You can always catch up paying the past dues sometime later like once after your cash flow gets better right? Wrong.

It's a completely different case, if your bookkeeper decides to embezzle your payroll tax deposit but your main problem is with the cash flow. The gross sales went down all of a sudden or the payments from the clients were not showing up on time. And then once you did get money, you are prepared to pay the IRS as much as and as far as possible. You think that this approach can solve your problem as well as keep Uncle Sam happy.

But then you learn that the IRS wants you to pay the entire payroll tax dues; they never like receiving just a portion of it. And since the late payment penalties are going to be huge with payroll tax deposits, you're now pushed into a world of never-ending tax problem. But can you come out of it? What is the solution to deal with the IRS payroll tax problems where you don't have to contend with the devil?

This is what you need to know. When you have a viable business that is experiencing problems with cash flow, the IRS has got a vested interest in keeping that business afloat! They want to see you be successful again on your business so they can collect unpaid payroll taxes as much and as quickly as they possibly can. The IRS may even encourage you to borrow on credit cards or take a loan to pay back the tax owed while putting levies on your business and personal assets at the same time.

What are the available options for you to deal with your payroll tax problems? Offer in Compromise, negotiating an Installment Payment Agreement, Non-Collectible Status and Penalty Abatement are a few solutions that might be available to you. Negotiations might include having your federal tax lien removed if it hinders in getting a loan to pay for your tax obligations. Also you should look for alternatives to stop the assessment of Trust Fund Recovery Penalties.

However, when you are not able to generate revenue and profits even after months of hard work, your business will be considered as not viable. And to top it all off, the Internal Revenue Service will not look kindly on people who aren’t able to pay up their payroll taxes. They just want their taxes no matter how bad your scenario is. The IRS views nonpayment of payroll tax liabilities a critical issue and they won't think twice in shutting down your company and then sell its assets to recover their taxes. And remember, pay-roll taxes cannot be discharged by filing a bankruptcy.

In such situations, a presence of legal professional can create a huge difference in the result of your case. The expert lawyers at IRS Medic have helped thousands of taxpayers with payroll debt problems throughout the country. We will make use of the very best solutions to stop aggressive collection efforts by the taxing entities and ensure the continuation of your business operations. Whether you are “in business” or “out of business” we can help you to put your payroll tax issues behind you!