The IRS is very aggressive in collecting unpaid payroll taxes. I believe it is critical to have a CPA, Attorney, or Enrolled Agent represent you, the taxpayer, in these types of situations. How you answer the first five questions asked by the IRS may determine whether you stay in business or find your business liquidated by the IRS. You should avoid meeting with any IRS representatives regarding payroll taxes until you have met with a professional to discuss your options.
Business Tax Debt and Penalties
Like individuals, businesses can also incur income tax debt and be penalized for filing returns late, making payroll tax deposits late, and paying tax due amounts late. You Have several options in dealing with or reducing your business tax debt. They include:
- Setting up a payment plan with the IRS
- Making an offer in compromise to settle your tax debt
- Filing a penalty abatement request