As a business owner, you are responsible for withholding income taxes from your employees’ paychecks.
You must also withhold Social Security and Medicare taxes. If your business fails to pay these payroll taxes, your business property and even your personal property may be at stake. The IRS may attempt to levy the accounts receivables, equipment, and bank accounts of your business. They may even shut down your company.
Whether your business closes, files for bankruptcy protection, or continues to operate, the IRS may also attempt to collect trust fund taxes from you personally. This is called the Trust Fund Recovery Penalty (TFRP).
Our payroll tax resolution specialists at East Coast Tax Consulting Group will examine both your business and personal finances and determine the best solution for payroll tax debt relief. East Coast Tax Consulting Group offers payroll tax help to resolve your payroll tax problems before the IRS takes collection action against you.
Trust Fund Recovery Penalty Help
The IRS can assess a TFRP against any person responsible for collecting or paying withheld income and employment taxes who willfully fails to collect or pay them. This person may include:
- An officer or an employee of a corporation
- A partner or employee of a partnership
- A corporate director or shareholder
- A member of a board of trustees of a nonprofit organization
- Another person with authority and control over funds to direct their disbursement
If you were aware—or should have been aware—that the payroll taxes were not being paid, the IRS will consider your payroll tax problems to be willful. Using available funds to pay other creditors and failing to pay payroll taxes is also an indication of willfulness.
If the IRS assesses the TFRP against you, you must make arrangements to pay, otherwise they can file a federal tax lien and levy or seize your personal assets. Whether you’re facing payroll tax problems as an organization or a responsible individual, our expert CPAs can help you find payroll tax debt relief. East Coast Tax Consulting Group will determine what payroll tax help is available based on your unique circumstances.