Offer In Compromise/Payroll Taxes/Trust Fund Penalty
In the course of running a company or business, you try to do your taxes on time and properly. For many business owners, though, tax issues do arise. Keeping yourself in good standing with the IRS is essential to the long-term success of your business, but payroll taxes can be confusing and mistakes are often made. When you face issues with the IRS due to a failure to properly file, or an inability to pay your taxes, you need an attorney with ample experience in business tax who can help you get out from under your tax issues and hold onto some of your hard-earned money.
Payroll Taxes/Trust Fund Penalty
Any business in California with employees must pay payroll taxes on those employees both with the IRS and State of California. Payroll taxes include unemployment insurance, state disability insurance, and the personal income taxes withheld from the pay of employees. The amount of these taxes depends upon employee wages. Failure to file these taxes properly and pay them on time will result in fines and penalties issued by the IRS and the State. If these obligations are not paid, the IRS and State will access all “responsible parties” personally for the obligation. This is the “Trust Fund Penalty.” Generally, all officers and directors of the company are subject to liability. If your company cannot meet its payroll tax obligations, seek help now. If the trust fund penalty has been accessed, seek help now.
Offer in Compromise
A big tax bill, including trust fund penalty is a huge problem if you don’t have the money to pay. When financial circumstances change, and paying taxes creates a financial hardship, it is sometimes possible to negotiate with the IRS to pay a lowered amount of taxes to settle your outstanding balance with a payment plan. However, if a payment plan is impossible you may be eligible for an offer in compromise. An offer of compromise is a complicated process where if, successful, you can pay a fraction of the amount owed. However, this process has limited success with the IRS, but sometimes the only viable option. If done correctly and the IRS believes the amount offered is the most they can reasonably expect to get from you over a period of time, the offer may be accepted. In determining this, the IRS looks at many factors including, the amount you owe, your income, expenses, and any assets you have that could be used to pay your taxes. I can help you.
Carlsbad Payroll Tax and Offer in Compromise Attorney
Thomas J. Beener is a Carlsbad based attorney with experience in payroll taxes and the highly specialized arena of offers in compromise. The success rate for offers in compromise is small and yet he obtained the lowest settlement amount compared to amount owed in the history of offers in compromise by the IRS, getting a $5,000,000 tax assessment down to an accepted offer of $17,434, a case that is now used as a training tool for new agents. Mr. Beener also won an appeal with California EDD for $600,000 of accessed payroll taxes. The odds of winning an appeal with the California EDD is 1%.
When you need help meeting your debt to the IRS, the Law Office of Thomas J. Beener can provide the guidance you need. Call or contact our firm to schedule a free consultation.