Like every other business owner with employees, you are required to pay payroll taxes. When you fail to meet this obligation, you may find yourself facing an IRS tax problem. It is important to know what your options are when these problems arise.
10 Options When Facing a Payroll Tax Problem
Here are just some of some of the options available to you when you are faced with a payroll tax problem:
- Contact an experienced attorney who can help you work with the IRS to resolve your problem.
- Review your tax accounts to assess whether the IRS may have incorrectly calculated the payroll taxes that you owe.
- With the help of your attorney, determine whether the amount of time the IRS has for collecting your payroll tax debt has already expired.
- Try to obtain an Offer in Compromise in order to reduce your payroll debt.
- See if the IRS will agree to a short-term deferral of the payroll tax debt in order to allow you to catch up.
- Try to negotiate an installment payment agreement with the IRS. This may allow you to pay your payroll tax debt over a period of as long as 10 years or more.
- Try to negotiate a release of any federal tax liens that have been imposed. This may allow you to obtain a loan to pay off the debt you owe.
- Try to have your payroll tax debt declared currently uncollectible.
- Try to obtain a release of payroll tax levies.
- File a claim seeking abatements for interest and penalties that have accrued.
Like many other business owners facing payroll tax problems, this is likely your first time dealing with the IRS over an issue. It is important to educate yourself. We encourage you to check out our free guide, The Ultimate Survival Guide For IRS Problems, to learn how to achieve success and eliminate your tax problems.