Salt Lake City, Utah – I hope everyone is doing well after the historic April snowstorm we just had. Even though we are in a drought, I am happy to see the sunshine and the temperature starting to rise. With the sun now shining, let’s get back to payroll taxes and the initiatives that the IRS has to stay on top of payroll taxes. In 2015 the IRS began a new payroll tax initiative. The initiative was designed for the IRS to get ahead of a business’s payroll tax problem before it mushroomed into something much larger. This tax initiative tests whether accelerating the timing of alerts to the taxpayers and the IRS will impact and identify which taxpayers would benefit most from these alerts.
In 2016, the IRS began to implement what is called the FTD Alert Program. In effect this program created a real-time system to identify variances in FTDs, this enabled the IRS to expand tax treatment streams, it allowed the IRS to have a prompt intervention program and to educate and modify taxpayer behavior for payroll tax compliance. In addition, it helped the IRS improve collection case selection and assignment and provided data-driven decisions for the IRS regarding taxpayers.
The FTD Alert Program is the only Collection tool available to the IRS that identifies anomalies in the employer’s pattern of payroll tax deposits. Using this tool to anticipate deposits that are missed allows Field Collection the opportunity to interact with the taxpayer and proactively address potential tax problems as they develop before the amount owed exceeds the taxpayer’s ability to pay.
If you are interacting with the IRS due to anomalies in your pattern of payroll tax deposits, talk to your tax professional to make sure that you answer each question appropriately. In my next post, I will explain the payroll tax liability assessment process.
Tax problems are legal problems, and we solve both. If you or someone you know has an issue with paying their federal or state taxes and needs help to end their IRS nightmare, please contact Kent Brown at Strong & Hanni by either phone at (801) 532-7080 or email at: kbrown@strongandhanni.com or go to my personal Strong & Hanni webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/
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