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Payroll tax relief addresses unpaid federal employment taxes, known as Form 941 taxes, which include the income tax and FICA (Social Security and Medicare) amounts withheld from employee paychecks along with the employer's matching share. The IRS treats unpaid payroll tax very seriously because withheld employee taxes are considered trust fund money held on behalf of the government. Business owners and certain responsible individuals can be held personally liable for the trust fund portion of unpaid payroll taxes through the Trust Fund Recovery Penalty (TFRP), even if the business itself later closes or files for bankruptcy.
Choice Tax Relief works to resolve both the business's payroll tax liability and any personal exposure to the Trust Fund Recovery Penalty. We review your payroll tax filings, negotiate directly with IRS revenue officers, and put a resolution in place that keeps your business operating while the debt is addressed. Where appropriate, we also help contest or reduce trust fund penalty assessments against responsible individuals and negotiate installment agreements or offers in compromise for the underlying business debt.
You likely need payroll tax relief if:
Payroll tax cases are generally handled more aggressively by the IRS than individual income tax debt, often involving an assigned revenue officer and a real risk of business closure through asset seizure. Because the trust fund portion can also become a personal liability for responsible individuals, addressing payroll tax issues quickly and with experienced representation is especially important.
We review your business's payroll tax filings and IRS account transcripts to determine the total liability, whether a revenue officer is assigned, and your personal exposure to the Trust Fund Recovery Penalty.
We communicate directly with the assigned IRS revenue officer or collections unit, work to prevent or release levies on business assets, and negotiate the terms of resolution.
We put a long-term resolution in place, such as an installment agreement or offer in compromise, and work to limit or contest personal Trust Fund Recovery Penalty exposure where appropriate.
Payroll taxes, reported on Form 941, include federal income tax withheld from employee paychecks along with Social Security and Medicare (FICA) taxes withheld from employees and matched by the employer.
The TFRP is a penalty the IRS can assess personally against business owners, officers, or other responsible individuals equal to the unpaid employee withholding portion of payroll taxes.
Yes. Individuals determined to be "responsible persons" who "willfully" failed to collect, account for, or pay over payroll taxes can be personally assessed the trust fund portion.
Because withheld employee taxes are considered trust fund money held on behalf of the government rather than the business's own funds, the IRS tends to pursue payroll tax debt more aggressively.
Yes. The IRS can seize business assets, bank accounts, and accounts receivable, and in serious cases pursue actions that can force a business to close.
No. The trust fund portion of the debt can still be assessed personally against responsible individuals even after a business closes or dissolves.
A revenue officer is an IRS employee assigned to actively work a specific collection case, often involving in-person visits, document requests, and direct negotiation, common in payroll tax cases.
Yes, businesses can potentially qualify for an installment agreement, though the IRS often requires proof of current payroll tax compliance going forward before approving one.
The TFRP generally equals the unpaid employee withholding and FICA portion of the payroll taxes, not including the employer's matching share or associated penalties and interest on the business debt itself.
Yes. The IRS can assess the TFRP against multiple responsible individuals for the same liability, though the total collected generally can't exceed the unpaid trust fund amount.
Remain cooperative but avoid providing extensive financial information without representation present; contact a qualified professional promptly to manage communication going forward.
The business's payroll tax liability may potentially be included in an offer in compromise, and personal trust fund assessments against responsible individuals can sometimes be addressed separately.
Immediately. Payroll tax cases tend to escalate quickly, often involving an assigned revenue officer and the risk of both business asset seizure and personal liability for responsible individuals.
Need more time to pay? We negotiate an installment agreement with the IRS calculated for an affordable, sustainable monthly payment based on your financial circumstances.
Read more >If paying the IRS would prevent you from meeting necessary living expenses, the IRS may temporarily suspend active collection. We prepare and present the financial case required to demonstrate hardship.
Read more >A bank levy or wage levy can create an immediate financial crisis. We communicate with the IRS, evaluate available collection alternatives, and work to obtain a levy release when the facts support one.
Read more >IRS penalties can substantially increase a tax balance. We determine whether you may qualify for relief based on compliance history, reasonable cause, or another applicable IRS procedure.
Read more >f you need immediate relief from IRS collections, call us today. You’ll get affordable, transparent pricing and a clear plan for the best possible tax debt settlement. Let the most trusted tax relief team lift the weight off your shoulders.