How the IRS Deals with Payroll Tax Debt
The IRS pursues payroll tax debt more aggressively than any other tax debt. This is because a portion of these taxes are withheld from an employee’s paycheck and are meant to be paid after the payroll has been run.
When the IRS assesses a business as owing back payroll taxes, they will assign a Revenue Officer. This officer becomes the primary point of contact with the IRS.
The Revenue Officer will contact the taxpayer directly, either in person or by mail, requesting the taxpayer to become fully compliant with their tax filings and make payment arrangements. The payments are two-fold; the taxes for the current payroll period and arrangement for the past due amounts.
The Revenue Officer will also determine if it is in the interest of the IRS to allow the business to continue operations. If a business fails to cooperate, the Revenue Office can take actions that will shut the business down.
If the taxpayer fails to file and pay the taxes on time, steep penalties and interest are charged.
After filing a Final Notice of Intent to Levy, the Revenue Officer can legally levy bank accounts and accounts receivable if the taxpayer does not file and pay by deadline. He or she may also send out notices to your customers, to collect the unpaid taxes directly from monies owed to the business.
What to Do If Your Business Owes the IRS Back Payroll Taxes
If you are unable to pay the past due payroll taxes immediately and a Revenue Officer has been assigned, it’s important to speak with a licensed professional about your options.
Each payroll case is complex and the best methods for resolution vary from case to case.
When you work with Precision Tax Relief, your case will be assigned to our attorney and a Senior Case Manager with extensive experience in complex payroll tax cases. From the first free consultation, we’ll advise you on the best possible alternatives for resolving your payroll tax liability.
You can trust us with your payroll tax problem. Precision Tax Relief has a 98% satisfaction rating in more than 700 reviews—more than any other tax relief agency.
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