Payroll Tax Solutions

Help Resolving Business Payroll Tax Debt

Payroll tax problems can quickly place a business and its owners under serious financial pressure. Employers are responsible for withholding certain taxes from employee wages, filing employment tax returns, and depositing the funds with the government on time.

When deposits or filings are missed, penalties and interest may increase the balance significantly. The IRS may also begin collection actions against the business and investigate the individuals responsible for handling its payroll obligations.

701 Tax Resolution helps businesses in Valley City and throughout North Dakota address unpaid payroll taxes, missing employment tax returns, deposit problems, and IRS collection notices.

Payroll tax debt is treated seriously because a portion of the money was withheld from employees and held for payment to the government. In some cases, the IRS may assess the Trust Fund Recovery Penalty against a business owner, officer, employee, bookkeeper, or another person it believes was responsible for collecting and paying the taxes.

This assessment can create personal liability for part of the business’s unpaid payroll taxes. Closing the business does not necessarily eliminate that potential responsibility.

701 Tax Resolution can review the business’s payroll tax history, identify missing returns or deposits, and communicate with the IRS or an assigned revenue officer. We can help prepare required financial disclosures, discuss payment options, and respond to questions related to a proposed personal assessment.

Resolving older payroll tax liabilities usually requires the business to remain current with new deposits and filings. Continuing to miss current obligations may make it more difficult to negotiate a resolution.

Depending on the circumstances, a business may be able to pursue a payment arrangement, request eligible penalty relief, or consider another collection alternative. The appropriate solution depends on the amount owed, the business’s cash flow, and its ability to remain compliant.

Contact 701 Tax Resolution to begin addressing your payroll tax problem before collection activity creates additional disruption.