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Business Payroll Tax Debt in NYC

Delinquent Payroll Taxes Can Threaten Your Business Operations.

If you run a company that has IRS business payroll tax debt in NYC, you should resolve it as soon as you can. The federal tax agency classifies it as theft and can move aggressively to enforce the payment of Form 941 payroll obligations.

If there’s a tax lien on your business, we understand your tough financial situation. Since business tax liens are in the public domain, they appear on your organization’s credit report. If you’re the business owner, these records may also appear on your personal credit report. They’re also accessible records to all entities that do business with you.

What are Payroll Taxes?

Every business must collect payroll taxes from its employees’ salaries and forward them to the IRS following a depositor schedule. Under no circumstances should funds raised for tax payment purposes cover other business expenses.

It’s essential to analyze your payroll taxes so you can figure out how to settle your tax debt. Doing so reduces the risk of undergoing an IRS audit and being slapped with penalties.

There are consequences for failing to collect and forward payroll tax to the tax agency on time. Your business can receive a notice through the mail for a Trust Fund Recovery Penalty (TFRP). The IRS can review this charge against anyone in the company they could hold responsible for the tax debt.

They include individuals with equity in the company or authority to make business decisions. You could be held responsible even if you’re unaware of the payroll tax debt.

This TFRP penalty is equivalent to 100% of the uncollected tax. You have the right to launch an appeal within 60 days of receiving the notification. Failure to respond will prompt the IRS to dispatch a Notice and Demand for settlement. The tax agency can go ahead to collect against your company without further correspondence.

Payroll Taxes

How the IRS Collects Business Payroll Tax Debt in NYC

The IRS considers small businesses to be the biggest culprits when it comes to uncollected taxes. It tends to intensify collection efforts against small companies, mostly during economic recessions.

This aggressiveness, when handling uncollected payroll taxes, can become challenging. You need professional tax services to help you with the complicated process.

The IRS has the power to confiscate your business assets and equipment and auction them. This action will severely limit your operational ability and lead to the collapse of your business.

The tax agency can also contact your debtors and instruct them to pay them instead of sending you the money. This turn of events will limit your ability to cover expenses such as wages and other bills. You’ll also have a hard time servicing current and future taxes.

The IRS can also physically block the entrance to your business, which will make it hard to keep operating. Your suppliers, employees, customers, and other associates might arrive at your premises only to find it shuttered.

In extreme circumstances, the IRS could bring criminal charges against those it holds responsible. Once the tax agency contacts you, your Federal Tax Deposits should be up to date from that point moving forward.

Apart from paying them entirely, it would help if you did so based on your deposit timeline, depending on how regularly you process payroll. If your business happens to gather new liabilities while working with an IRS agent, your chances of receiving a favorable payment agreement will dwindle.

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What to Do When You Have Unpaid Payroll Taxes

Having payroll tax debt could harm your business, so you should move fast to resolve it. It is advisable to use debt settlement plans such as the IRS Installment Agreement. It allows you to pay your tax obligations in manageable monthly portions.

The tax agency may also accept your application for forgiveness or penalty forgiveness, so long as you provide valid reasons for incurring tax debt. The best way to handle this crucial process is to hire a licensed tax expert.

This professional will establish whether you’re eligible for penalty abatement, as well as the best payment plan you qualify for. The expert will also go through your financial documents and tax returns to try and come up with the most efficient settlement options. Picking the right resolution method is essential if you want a successful resolution of your tax debt.

How True Resolve Tax Professionals Can Help

You should comply in full with federal guidelines if you want to stay out of business payroll tax debt in NYC. If you feel overwhelmed by the process, our New York-based tax experts at True Resolve Tax are always willing to assist.

We can represent you at the IRS with a view of setting up a settlement method and help you qualify for the best tax resolution plan. We also provide services that guarantee the accuracy of your future payroll. Call us today for more information or to set up a consultation.

Call today to speak with one of our Licensed Tax Experts 716-634-6200