If you failed to pay your employees’ payroll taxes to the government, you will find yourself in a very difficult and frustrating situation. The IRS withholds payroll taxes to create a trust fund for the benefit of the government and your employees. If you failed to pay these taxes, the IRS must credit your employees for having paid the tax, even giving refunds, while they never received the money to pay the taxes for which the employee gets credit.
In the opinion of John McDuff, the IRS is more strict in enforcing tax collection on payroll taxes than other types of taxes. It is therefore crucial that you find professional help from an experienced tax attorney, such as John McDuff.
How Does the IRS Collect on Unpaid Payroll Taxes?
To collect the back taxes that you owe, the IRS can seize the assets of your business, which may result in the closing of your business. Regardless of the situation, the IRS will file a lien against you very quickly.
IRS Collection Methods
The IRS may seize the assets of your business and, therefore, close the business. Regardless, they will file a lien quickly. They can issue bank levies and take all of the cash that your business needs to operate.
Expect these actions to be taken against you even if you simply hesitate to enter into some sort of installment plan with the IRS. If you enter into a payment plan but still fail to pay your debts, you are in special collection trouble. If the new liability that you create is greater than the payments you are sending to the IRS, you have pyramided your liabilities, with the total liability getting even larger. The IRS will act quickly, and shut you down, in many cases.
Contact The Law Office of John McDuff, P.C.
John McDuff has over 20 years of experience working as a tax attorney. He knows how to handle these situations, always with the goal of helping you keep your business open. Handle your payroll tax problem successfully, with your business staying open, and without you personally liable. Contact John McDuff at 512-457-1177.