How to Negotiate Payroll Tax Relief With IRS
Whether you are a business owner or employee, one of the first things that come to mind when dealing with taxes is payment. Payroll taxes are one of an individual or entity’s most common tax filings—a minuscule mistake in filing taxes in bigger tax liability than other related fees. The only way to deal with this kind of situation is to seek legal advice from an experienced lawyer like Jones tax relief; who can help you with any questions you might be having and also outline a strategy for your case.
IRS levy notice is considered the best way to collect unpaid payroll taxes. However, it is also one of the most stressful experiences that you can go through. It takes a lot of time, money and patience to negotiate with the IRS to reduce or even remove your payroll tax debt from collections. The best way to eliminate all threats is payroll tax debt relief. This is where jones’s tax relief service comes into the picture.
What are payroll taxes?
A payroll tax is a tax that is withheld, imposed, or levied on an employer’s payroll. This covers all gross salaries, wages, benefits, and other forms of remuneration given to employees. This tax is imposed independently of the employee’s place of residence, family status, or other personal circumstances. Payroll taxes are taxes that employers must pay or withhold on behalf of their employees.
How are payroll taxes operated by employers?
Employers are responsible for appropriately deducting taxes from their employees’ wages, calculating their own share of taxes, making payments, and submitting returns to government authorities on time. The following taxes must be paid regularly:
- Social Security and Medicare taxes
- Federal income tax
- State and local income tax
- Federal and state unemployment
How to negotiate payroll tax relief with IRS?
IRS Trust Fund Recovery Penalty
The IRS Trust Fund Recovery Penalty, as contrasted to affluent trust funds, is a penalty levied on persons who committed to pay money to the IRS but did not do so. Individuals who face an IRS Trust Fund Recovery Penalty are often employers who fail to submit withheld taxes on their workers’ behalf.
This penalty may be imposed on everyone involved in the nonpayment, not only the firm’s owners. The IRS has the ability to levy the penalty on as many individuals as are implicated in the failure to pay until one or all of them satisfy the obligation.
Request Installment Plan
In most circumstances, paying your taxes is the only way to avoid a tax lien or levy. If you cannot make a payment immediately, don’t despair—you may request that the IRS remove the federal tax lien from public record. This is achievable if you agree to an installment plan that automatically deducts money from your bank account over time. (This installment payment may include interest and penalties.)
Offer in Compromise
The next step is to inquire about making an Offer in Compromise. Keep in mind that there are several standards to meet and that the IRS typically approves less than half of the petitions it receives in any given year. All tax forms must be filed, and all expected tax payments for the current tax year must be made. The IRS will not accept your application if you are currently in bankruptcy or being audited.
Request an extension
If your business has not accumulated considerable penalties, requesting a modest extension as indicated above may be adequate. However, if penalties and interest have already accrued, you may desire to seek a reduction, especially if you can explain why you do not feel your firm owes the money or if you can describe an unexpected circumstance that prevented you from paying. You may utilize an abatement or deferral for payroll or small business back taxes.
Programs for Innocent Spouses
If you and your ex-spouse submit a joint tax return, you may be held jointly liable for any tax deficiency. However, married or separated couples may be eligible for Internal Revenue Service (IRS) tax relief if one spouse hides tax liabilities from the other.
If one partner can demonstrate that the other partner underreported income, overstated expenditures, or claimed incorrect deductions or credits. The aforementioned principles may enable the deceived partner to petition for tax relief.
Consider Tax Deferment Options
If a person owes payroll taxes but cannot pay them, the IRS may declare the amount owed as “Currently Not Collectible.” This is a deferral status that permits someone to receive payments over a longer period of time. To qualify, you must establish undue hardship by proving that you would have little money left over after paying your basic monthly living expenses.
Hire a tax specialist to negotiate on your behalf
The IRS provides a number of services to help clients repay their debt in installments or reduce the amount owed altogether via settlement agreements. Consider the federal payment levy plan as an example. Regardless of their benefits, these systems can only assure effectiveness if they are guided by experts who understand the necessary laws and procedures.
Therefore, if the amount on the levy notice is in question or you wish to negotiate, it is important to immediately begin communication with the IRS. A seasoned tax relief lawyer can help explain your options and resolve your tax debt. Many of our clients have successfully gotten this payroll tax relief, so your chances are good. The IRS will not give you free payroll tax relief. You have got to work through the system to get their attention and show them that it is a mistake.