Payroll taxes behind? Protect the business and yourself.
Unpaid payroll taxes grow fast, and part of them can become a personal debt for owners and officers. We get deposits back on track, deal with the IRS revenue officer, and build a plan for the past balance.
Illustration only. Amounts are rounded examples, and actual withholding depends on each payroll.
Is this you?
Payroll tax problems usually start small and grow quickly. Reach out if any of these sound familiar.
Deposits were missed
Cash got tight, and payroll tax deposits were skipped or paid late to cover other bills.
Notices about Form 941
The IRS is sending notices about unpaid quarterly payroll taxes and penalties.
A revenue officer reached out
An IRS revenue officer visited or called and wants to interview owners or officers.
A letter proposing a personal penalty
You received Letter 1153, proposing the Trust Fund Recovery Penalty against you.
Every day late moves the needle.
Payroll tax deposits have their own penalty, and it climbs in steps as a deposit gets later. Getting current quickly limits how far it goes.
- 1 to 5 calendar days late2%
- 6 to 15 calendar days late5%
- More than 15 days late10%
- More than 10 days after an IRS notice, or on demand for immediate payment15%
The rate does not stack. As a deposit gets later, the whole penalty moves up to the next tier.
States charge their own penalties on late withholding and unemployment tax deposits. We handle state payroll accounts too.
When it becomes personal.
The Trust Fund Recovery Penalty can be assessed against anyone who was responsible for paying the taxes and willfully did not.
- Authority to decide which bills and creditors get paid.
- Control over payroll, the bank accounts, or employment tax filings.
- Knew, or should have known, that the taxes were unpaid.
- Paid other creditors anyway, or was plainly indifferent to the requirement.
- Unpaid Form 941 balancesQuarterly payroll taxes go unpaid, and the account moves to collection.
- The interviewA revenue officer interviews owners and officers, often with Form 4180, to learn who controlled the money.
- Letter 1153The IRS proposes the penalty in writing. You generally have 60 days from the letter to appeal.
- Personal assessmentWithout a successful appeal, the penalty is assessed against you and collected like any personal tax debt.
The trust fund amount is generally collected only once. Payments made by the business or by any responsible person reduce what remains for everyone.
From missed deposits to a plan.
Five steps, with one point of contact the whole way through.
- 1
Confidential review
We look at the notices, the unpaid quarters, and your role in the business to see where the risk sits.
- 2
Get current first
We help put current deposits and filings back on schedule, since the IRS expects that before most plans.
- 3
Quantify the exposure
We pull the payroll tax transcripts and separate the trust fund portion from the rest of the balance.
- 4
Handle the IRS
We prepare you for the interview, speak with the revenue officer, and appeal a proposed penalty when the facts support it.
- 5
Resolve the balance
A payment plan, penalty relief on late deposits, or an offer. We build the option that keeps the business moving.
What to know right now.
A few facts that matter the most when payroll taxes fall behind.
Trust fund taxes can become personal
Income tax withheld and the employees’ Social Security and Medicare can be assessed against responsible people personally.
Sixty days to appeal
After Letter 1153 arrives, there are generally 60 days to appeal the proposed penalty. Waiting can close that door.
Current deposits come first
The IRS generally expects new deposits to be made on time before it agrees to a plan for past balances.
What we do for you.
An Enrolled Agent leads your case, with the same person handling it from the first call to the final result.
Interview preparation
We prepare owners and officers for the IRS interview, and attend on your behalf where allowed.
Plans that keep you operating
We build payment options around your cash flow, so the business can keep running and staying current.
Deposit penalties reviewed
We check whether late deposit penalties qualify for relief, including first time abatement.
State payroll too
State withholding and unemployment tax problems usually come together. We handle both.
About payroll taxes.
The questions we hear most. Anything else, ask us during your free case review.
Can I be personally liable for my company’s payroll taxes?
Yes. If you were responsible for paying them and willfully did not, the IRS can assess the Trust Fund Recovery Penalty against you personally, equal to the unpaid trust fund taxes.
What counts as trust fund taxes?
Income tax withheld from employees and the employees’ share of Social Security and Medicare. The employer’s matching share is not part of the trust fund amount.
Can the business keep operating?
Many businesses do, as long as current deposits are made on time and a plan addresses the past balance. We work toward that from the first week.
I received Letter 1153. What now?
Do not wait. There are generally 60 days from the date of the letter to appeal. Send it to us and we will review the facts right away.
The rest of the case.
Payroll tax cases usually involve more than one path. These services cover the rest.
Penalty Abatement
Requests to reduce or remove penalties where the case is eligible.
View serviceRelated serviceInstallment Agreements & Payment Plans
Structured monthly plans negotiated with the IRS or the state.
View serviceRelated serviceIRS Appeals & Tax Dispute Representation
Representation when you disagree with an IRS decision and want it reviewed.
View servicePayroll taxes behind? Let us step in.
Send us the notices or the letter you received. The first case review is free and confidential.
Free case reviewNo obligationOne point of contact