If your company has fallen behind on payroll tax deposits, received IRS notices regarding payroll taxes, or is being investigated for payroll tax debt, it’s time to get the professional guidance you need to catch up and get compliant. 

Payroll tax problems can escalate quickly – but with our help, you can put these issues behind you and get back to running your business. 

The team at the W Tax Group knows how catching up can seem impossible once you’ve fallen out of compliance, but we also know what it takes to get you back on track. Our focus is on helping you control the situation, limit personal liability risks, and work towards a resolution. Call us at 877-500-4930 to schedule a consultation now.

You’re In the Right Place If…

• Your business has unpaid payroll taxes
• You’ve received IRS notices about payroll tax penalties
• You’re being investigated for the Trust Fund Recovery Penalty
• You’ve been contacted for a Form 4180 interview
• You received IRS Letter 1153 proposing personal liability
• You’re facing allegations of payroll tax fraud
• You want help closing a business with delinquent payroll taxes

Each of these situations indicates a high risk of aggressive IRS involvement. The earlier you respond, the more options you have available. Representation from our attorneys can help you protect your business and avoid common missteps that could worsen your position.

Payroll Tax Problems We Handle for Clients

Businesses often face payroll tax problems – due to complex federal, state, and multi-state obligations, cash flow problems, or even small errors. Once you get behind, the situation can snowball quickly, but we’ve seen it all and will leverage our experience to help you resolve the situation.

Let our team help you with:

• Unpaid or overdue payroll taxes
• Unfiled payroll tax returns
• Late deposit penalties
• Michigan payroll tax problems
• Delinquent withholdings or returns in other states
• Misclassification of employees and independent contractors
• Accrued penalties and interest 
• Business closure with outstanding payroll liabilities
• Trust Fund Recovery Penalty investigations and assessments
• Payroll tax fraud allegations

At The W Tax Group, we look at your full situation, identifying what caused the initial problem, where the IRS is in the collection timeline, and how to approach your case for the best possible outcome.

How Payroll Tax Problems Escalate & Why You Should Act Now

When payroll taxes go unpaid, the IRS and the states don’t treat the situation the same way as they treat other unpaid taxes. They view it as a failure to turn over government funds that were withheld from your employees’ pay. As a result, enforcement may be far more aggressive than business owners expect.

While the process may play out slightly differently for each business, ignoring payroll tax problems can cause them to escalate, putting your business at risk of:

• Late deposit and filing penalties – late deposit penalties can get up to 15%, while filing penalties and interest add even more.
• Compromised cash flow – the further you get behind, the more it puts your cash flow at risk, especially if the original delinquency was due to using withheld taxes for operational expenses. 
• Revenue officer assignment – they’ll call your business, request meetings, and potentially even show up.
• Trust Fund Recovery Penalty – the IRS uses this penalty to collect unpaid trust fund taxes; it’s worth 100% of the unpaid tax and is levied on individuals, not the business. 
• Personal liability risks – In addition to the risk of personal liability for the TFRP, there’s a personal liability risk for most unpaid state payroll taxes as well. 

If you don’t pay, the IRS can use liens, bank levies, or asset seizure to collect the tax involuntarily from your businesses. Once the trust fund penalty has been assessed, the IRS can start collections against liable individuals, including wage garnishments or other levies.

You can even face criminal risks – although it’s rare, cases involving criminal intent to defraud the government can lead to imprisonment for payroll taxes. 

Facing a Trust Fund Recovery Penalty? You Need Experienced Representation

The Trust Fund Recovery Penalty is one of the IRS’s strong enforcement tools. This penalty allows the IRS to go after your personal assets for unpaid payroll taxes – regardless of your business’s structure. 

Protecting yourself requires experienced representation, and that’s exactly what the team at The W Tax Group offers. Our TFRP defense includes full guidance through TFRP investigations, including:

• Form 4180 Interviews: The IRS conducts Form 4180 interviews to figure out who in a business had the responsibility to pay these taxes, who decided now to pay them, and who knew about it. Our representation gets you through these interviews strategically and, when possible, to avoid them. 
• Letter 1153 proposed assessments: This letter means the IRS has proposed the TFRP against you, and you’ve got limited time to act. Get our help responding to these letters, fighting assessments, and building arguments on partial liability assessments. 

Defending against the TFRP requires an in-depth analysis of the facts specific to your case. We can challenge responsible party determinations, contest claims of willfulness, and fight personal liability whenever possible. 

As needed, we’ll use appeals to challenge the IRS’s penalty assessment or collection actions.

How W Tax Group Solves Your Payroll Tax Problems

At W Tax Group, we know that effective resolution isn’t just about filling out forms and hoping for the best. We tailor strategies to our clients’ specific needs and risks. We provide:

• Immediate case assessment and risk analysis
• Direct communication with the IRS on your behalf
• Negotiation of settlements or payment plans
• Penalty abatement, if applicable
• Defense against TFRP assessments
• Preparation and representation during Form 4180 interviews
• Filing timely appeals, including responses to Letter 1153
• Guidance on maintaining compliance moving forward

Resolution Options for Payroll Tax Debt

Depending on the specific details of your situation, several different resolution paths may be available to help you pay your delinquent payroll tax debt:

• Installment agreements that allow you to pay the debt off over time
• Offers in compromise that settle the tax debt for less than you owe
• Currently not collectible status for temporary relief from collection efforts

We evaluate your eligibility, explore your options, and move swiftly to negotiate directly with the IRS on your behalf. We can also help you deal with unpaid state withholding in Michigan or other areas.

When to Hire a Payroll Tax Attorney

The right help is critical, but when do you need it? If you’re dealing with any of the following related to payroll tax debt, reach out promptly:

• Mounting payroll tax debt putting your operations at risk
• Unable to qualify for the IRS’s online trust-fund express payment plan
• Juggling state and IRS payroll debt
• Not sure if a payment plan is the best option
• Need help limiting personal liability risk for the debt 

If you’re significantly behind and have been receiving IRS notices for a while, here are the most important ones that signal you should contact an attorney now:

• Notice of Intent to Levy Business Assets
• Assignment to Revenue Officer
• FTD Alert Letters – indicating high potential for revenue officer assignment
• TFRP notices – the stakes are very high now
• Notices about delinquent state withholding

The IRS is bigger than the state revenue agencies – but the states are often more aggressive. They’re likely to show up and padlock your business much sooner than the IRS. 

Getting ahead of the situation with professional representation gives you access to the greatest variety of options. Don’t wait – contact The W Tax Group today. 

Why Choose The W Tax Group

Lean on our expertise if you’re facing payroll tax problems. We have helped many businesses just like yours during times of financial hardship, and we’re committed to helping you address your payroll tax concerns and get back in compliance. Here’s why we’re the right choice when you need help:

• Focused on IRS tax resolution– we’re not a general tax prep company; we specialize in resolving problems.
• In-depth experience with state and IRS payroll tax problems – the rules on payment plans and relief options for these taxes vary from other taxes, making experience critical. 
• Services for all employers – we’ve represented all kinds of employers, including sole props, partnerships, corporations, household employers, non-profits, and more. 
• Tried and tested process – our multi-step resolution process ensures we develop an in-depth understanding of your case and that everything gets addressed.
• Attorney-led team – highly trained, very experienced attorneys drive the strategy for every case.

Our extensive experience with payroll tax concerns, nationwide representation, and focus on protecting our clients’ best interests make us a natural choice for the issues you’re facing now.

Frequently Asked Questions

Can I be personally liable for my business’s payroll taxes?

Yes. If the IRS determines that you were a responsible party and willfully failed to pay payroll taxes, you may be personally liable, and they may assess the Trust Fund Recovery Penalty.

What if I’m not the business owner?

You do not have to be the business owner to be held personally liable for unpaid payroll taxes. Executives, board members, payroll professionals, and others with the ability and responsibility to pay payroll taxes may be assessed the Trust Fund Recovery Penalty.

What happens during a Form 4180 interview?

The IRS asks questions about your role at your place of employment, including your financial authority and knowledge of tax issues.

What is IRS Letter 1153?

This letter is a formal notice proposing personal liability under the Trust Fund Recovery Penalty. It gives you a letter to appeal the IRS’s decision before it becomes a formal assessment.

How do I fight a Trust Fund Recovery Penalty?

You can fight the TFRP by challenging responsibility, proving that you did not act with willfulness, and appealing the IRS’s decisions regarding responsibility.

Can payroll tax debt be settled?

In some cases, payroll tax debt can be settled through an offer in compromise. However, it is challenging to settle payroll tax debt, as it involves funds that belong to the government. Additionally, if multiple people are held liable for the payroll tax debt and one person settles their debt, the others may still be held liable.

Will the IRS shut down my business?

In extreme cases where the IRS has tried multiple other options to secure payment, enforcement actions may lead to closure.

Can multiple people be held responsible for the TFRP?

Yes. During Form 4180 interviews, the IRS may identify multiple liable parties and assess the penalty against all of them.

Take Control Before the IRS Takes Action

Payroll tax problems don’t go away or resolve themselves. But with the team at W Tax Group, you can get one step closer to resolution right now. Call us at 877-500-4930 or fill out our online contact form to schedule your free tax relief consultation.