February 27, 2020

I Owe Payroll Taxes from a Business – is There any Hope for Me?

Yes, there is hope, although my experience is that the IRS pursues business tax obligations much more agressively than personal tax obligations. Why? Payroll tax debt is considered “trust fund” money. In other words, if you withheld money from an employee’s pay, you were acting as a “trustee” for the federal govenment. By failing to remint these f unds, you were not only failing to pay your taxes, but you were failing to pay someone else’s (your employee’s) taxes.

Although the IRS will consider tax settlements for 941 payroll tax debts, this type of settlement can be very hard to get. If you have trust f und liability, you should most definately be proactive and deal with these obligations sooner rather than later.


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Jonathan Ginsberg

Attorney at Ginsberg Law Offices
Attorney Jonathan Ginsberg helps taxpayers work out negotiated settlements of tax debt with the IRS and Georgia Department of Revenue.

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