Payroll Taxes

Business Owners or “Responsible Person”

Payroll Taxes Not Filled or Paid On Time?

Your business is doing well, but sometimes you run out of cash and cannot make payroll tax deposits on time. Perhaps you simply got busy and missed filing your quarterly payroll tax returns.No matter what the reason, you’re behind on your payroll tax filings or payments.

It might seem like you’re borrowing money from the IRS until your business is back on track, but the IRS does not see it that way. Late payroll taxes are taken more seriously by the IRS than just about anything else because they are used to pay Social Security taxes.


Late Payroll Tax Payments Are Serious

Taking payroll taxes late is like stealing money from the government, and that’s why the IRS has put some teeth into its enforcement. Act quickly if you want to maximize the effectiveness of your tax representation.

Penalties can add up quickly. You’ll have to pay a late filing penalty, a Trust Fund Recovery Penalty, plus interest on late taxes. Having back payroll taxes to pay can put you in a tight spot really fast. Additionally, carrying such a burden drains your peace of mind.

An IRS letter, state tax agency letter, or local entity letter will be sent in these cases:

  • The payroll tax payment deadline has passed.
  • Your payroll tax report is late.
  • The amount paid is less than or more than what the IRS or another tax agency calculates as due.
  • A discrepancy has been spotted on your payroll tax returns, and the agency needs to know why.
  • You have been selected for an audit.
  • In previous correspondence, you failed to respond.

Please note: You will never receive an email from the IRS regarding any of the above situations. All of their correspondence is sent by physical mail. It’s a scam if you get an email. 

When you fail to respond to the IRS’s initial letters, the IRS and others can levy, garnish, and seize your property to collect the payment. This is not something you want to happen.

If you are struggling with payroll taxes, hiring a tax professional would be a great idea. They can assist you in the following ways:

  • Respond professionally to IRS correspondence
  • Help you file late back tax returns
  • Know your rights and understand the IRS Collections process
  • Negotiate your debt by reducing penalties, interest, and taxes due
  • Establish a payment plan with the IRS if you owe it money
  • Represent you when issues arise, such as situations involving “responsible persons”
  • Get your assets freed from levies and liens

Responsible Person

A company that failed to file payroll tax returns or pays payroll taxes on time may designate you as a “responsible person.” Don’t ignore this correspondence!

Tax authorities aggressively pursue anyone who owes payroll taxes, regardless of whether you own the business. The IRS can hold you responsible for not paying payroll taxes if you have a particular relationship with the business. This case is one in which you are presumed guilty until proven innocent.

The right thing to do is to hire a tax representation professional who will be able to argue your case to get your “responsible person” status removed.

Solutions for Your Payroll Tax Challenges

Our team can provide you with advice on the payroll tax options that are available to you at no cost to you. Please contact us at no obligation to you so we can understand your specific payroll tax situation. Keeping your tax information confidential and private is our top priority.

Call (866) 459-8026 or click below to schedule your FREE consultation.

Scroll to Top