The team at Boxelder Consulting consists of licensed enrolled agents, tax attorneys, and accountants with decades of experience resolving payroll tax debts by negotiating settlements and penalty abatements directly with the IRS. Our relentless and diligent approach has saved countless clients millions of dollars and, in many cases, their business altogether.
Payroll Tax Debt Resolution
Failure to file and make monthly or biweekly contributions towards payroll taxes is a certain way to get into serious trouble with the IRS. When a business fails to make Federal Tax Deposits, it is effectively taking money from the federal government. Payroll tax penalties will lead to large IRS assessments and the personally assessed Trust Fund Recovery Penalties that attach to responsible parties. This will, of course, increase the possibility of seizures and levies. If you’re struggling with a Trust Fund Liability or payroll tax debt, it’s important to understand the specifics of this problem and what can be done to resolve it.
WHAT IS PAYROLL TAX?
As a business owner, whether small or large, you have an obligation to withhold money from your employees’ paychecks for Medicare and Social Security taxes. The withheld funds are trust taxes, also known as payroll tax, which business owners report to the IRS using Form 941. The IRS holds the employer accountable to collect these trust fund taxes on a biweekly or monthly basis and report them using form 941 on a quarterly basis. An easy way to think of this is that the federal government “trusts” that you will deposit the funds in the treasury account for payment of Social Security and Medicare.
HOW DO PAYROLL TAX PROBLEMS HAPPEN?
If you own a business, you’re probably all too familiar with the complexities of calculating and paying payroll taxes. Between the different state and federal calculations for payroll taxes, it can be confusing to figure out how much to pay, how often to pay it, and what to do if you find yourself in a situation where you can’t pay.
Most problems result from businesses miscalculating the taxes owed or a failure to file in a timely fashion. These simple mistakes can have dire consequences – if not addressed, penalties and interest accruals have a snow-ball effect and, eventually, can grow into a debt so grave and unmanageable it seems impossible to solve.
Furthermore, as a struggling business, borrowing money from withholding trust accounts may seem like a plausible option for quick cash to make ends meet in the short-term. However, what seems like an innocent attempt to keep the business afloat can become dangerous, risky, and illegal. If the business fails to replenish these funds, the employer (and other “responsible persons”) can be held liable for the failure to pay the trust fund taxes. In the end, the risks greatly outweigh the reward.
WHAT CAN YOU DO?
If your business is currently facing a payroll tax problem, you need to develop a resolution game plan and put it into action immediately. It’s absolutely critical to hire representation for tax problems of this magnitude. Having a team of experienced professionals advocating for your rights before the IRS is the best resolution strategy.
The team at Boxelder Consulting consists of licensed Enrolled Agents, tax attorneys, and accountants with decades of experience resolving payroll tax debts by negotiating settlements and penalty abatements directly with the IRS. Our relentless and diligent approach has saved countless clients millions of dollars and, in many cases, their business altogether.
Once the Boxelder team isolates and encapsulates the past due trust fund liability and puts the focus back on staying current with Federal Tax Deposits, our goal is to then fix the source of the problem, so it doesn’t happen again. Boxelder Consulting has an ongoing relationship with the two largest third party payroll providers – ADP and Paychex – that will ensure your payroll taxes are filed timely and accurately.
Call Boxelder Consulting today for a trusted team of tax relief specialists to calm your concerns regarding payroll tax debt. We believe in second chances. Start your comeback story today.