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
