The primary focus of my firm is tax representation in Parkchester, NY. The first step in resolving payroll tax debt is to actually repay the payroll tax trust fund to the IRS. When employers of small businesses withhold federal taxes on behalf of their employees, they have a duty to hold the funds in trust as a fiduciary and in turn pay those withholdings to the IRS as scheduled. When small businesses don’t do this, it becomes a major problem for the IRS. The employees of the very same withholdings would have filed their federal tax returns claiming the withholdings from their W2s so the IRS knows it had already been withheld by the employer. Now they are wondering why they haven’t been paid those withholdings by the employer. Basically, they are paying out refunds to taxpayer employees yet they hadn’t received the tax funds held in trust by the employer. Therefore, this tax debt is viewed a lot more seriously by the IRS than most of tax delinquent cases.
At this point, the IRS is aggressively looking to get payroll taxes due to them. The small business owner would need to, like any other delinquent taxpayer of a tax debt, make arrangements to repay the tax. The IRS would also seek out who exactly is responsible for releasing those trust funds. Anyone with those responsibilities, even if the employee doesn’t hold a high-ranking position, could be a target for the IRS to claim those trust funds. Assuming the responsible person is indeed the correct person, then payment arrangements in the form of an installment agreement is a solution into resolving the debt.
If you or someone you know have payroll trust fund debt that needs to be repaid to the IRS, please feel free to contact me at (917) 708-1097, or via email at millertax.ea@gmail.com.
Miller Tax & Advisory Services
P.O. Box 967
Parkchester, NY 10462
Ph. (917) 708-1097
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