Payroll Tax Problems
Payroll taxes are the IRS's highest collection priority because they include money withheld from employees. If your business has fallen behind, we act quickly to protect the company and its owners from personal liability.
How Nelson & Associates handles Payroll Tax Problems
When a business doesn't deposit withheld income tax and the employees' share of Social Security and Medicare, the IRS can assess the Trust Fund Recovery Penalty personally against owners, officers and anyone else responsible for deciding which bills get paid. That makes payroll tax debt different from other business debts.
We bring delinquent payroll returns current, set up a deposit schedule that prevents new liabilities, represent you in the Form 4180 interview and negotiate an agreement for the back balance. We also handle Florida reemployment tax issues with the Department of Revenue.
Who this is for
- Employers behind on Form 941 deposits or filings
- Owners and officers contacted about the Trust Fund Recovery Penalty
- Businesses that received a Letter 1153
- Companies with unfiled Forms 940, W-2 or W-3
- Employers facing worker classification questions
- Restaurants and service businesses with tip reporting issues
Everything covered in our Payroll Tax Problems service
- Filing of delinquent Forms 941, 940 and W-2s
- Deposit schedule setup to stop new liabilities
- Representation in Trust Fund Recovery Penalty interviews
- Appeals of proposed Section 6672 assessments
- In-business installment agreements
- Penalty abatement requests
- Florida reemployment tax (RT-6) resolution
- Payroll process review to prevent repeat problems
The paperwork behind Payroll Tax Problems
| Form 941 | Employer's quarterly federal tax return |
|---|---|
| Form 940 | Employer's annual federal unemployment (FUTA) tax return |
| Form 4180 | Interview to determine trust fund recovery penalty liability |
| Letter 1153 | Proposed trust fund recovery penalty assessment |
| Form 433-B | Collection information statement for businesses |
| Florida RT-6 | Employer's quarterly reemployment tax report |
What we’ll need from you
Have these ready and your first meeting goes faster. Missing something? We’ll help you find it.
- IRS and Florida notices received
- Payroll registers and quarterly reports
- Bank statements for the business
- Records showing who signs checks and decides payments
- Prior Forms 941 and 940 filed
- Current accounts receivable and payable aging
How it works, step by step
Free confidential consultation
Tell us what the IRS sent and what has happened so far.
Get your IRS file
We pull your transcripts to see exactly what the IRS sees.
Build the solution
We file what's missing and choose the best resolution option.
Resolve and stay compliant
We negotiate, confirm the outcome and keep you on track.
Why clients choose us for Payroll Tax Problems
CPA representation
With your signed Form 2848 we deal with the IRS directly, so you don't have to.
Efficient and affordable
We work toward the fastest resolution that fits your finances.
Extremely discreet
Your situation stays private, handled only by authorized staff.
Fraud and forensic background
Our founder has served as an expert witness in federal tax cases.
Payroll Tax Problems across the United States
From our Doral office we provide Payroll Tax Problems to clients in all 50 states and Washington, D.C. Hover over a state to see its tax profile and the cities we serve; tap it to open the state page.
Services clients often pair with this
Payroll Services
Full-service payroll with direct deposit, federal and Florida payroll tax filings, year-end W-2s and new-hire reporting.
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Stop or release IRS bank levies and other seizures of funds, and put a resolution in place before more is taken.
Learn more Tax Preparation & PlanningFICA Tip Credit
Claim the federal credit for the employer share of Social Security and Medicare tax paid on employee tips, for restaurants, bars and beauty businesses.
Learn moreMore in IRS Tax Problems & Resolution
Payroll Tax Problems FAQs
6 answers to the questions clients ask most. Don’t see yours? Ask us directly.
Can I be personally liable for my company's payroll taxes?
Yes. The Trust Fund Recovery Penalty lets the IRS collect the withheld portion of payroll taxes from responsible individuals personally, even if the business is a corporation or LLC.
What is the Form 4180 interview?
It's an IRS interview used to determine who was responsible for and willfully failed to pay trust fund taxes. Having a representative prepare you, and attend, matters a great deal.
Can my business keep operating while we resolve this?
Usually, if it stays current on new deposits. The IRS will typically consider an in-business installment agreement only when current payroll taxes are being paid.
We pay our workers as contractors. Is that a problem?
It can be if they are really employees under IRS rules. We review classification and, where appropriate, discuss relief programs that limit back liability.
Can penalties be reduced?
Deposit and filing penalties can sometimes be abated for reasonable cause or under first-time abatement.
Do you offer Payroll Tax Problems outside Florida?
Yes. Our office is in Doral, Florida, and we work with clients across the United States and abroad through secure uploads, phone and video meetings and e-signatures. South Florida clients are welcome to meet with us in person.
Talk to a CPA about Payroll Tax Problems.
Your initial consultation is free. Call us, email us or visit our Doral office, and we’ll tell you exactly what you need and what it will cost.