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940 & 941 Payroll Tax

Stop tax debt from crippling your business with a reliable IRS payroll tax attorney

Find out if You Qualify for Unpaid Tax Relief in Four Easy Steps!

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What is Payroll Tax Debt?

Payroll tax debt occurs when business owners fail to pay the required payroll taxes to the IRS. These taxes include federal income tax, Social Security, and Medicare contributions that are withheld from employee wages. Employers are responsible for collecting and remitting these taxes to the IRS on behalf of their employees. In that case, it accrues payroll tax debt, which can lead to severe tax penalties and obligations.

Payroll Tax Debt Help Made Easy with J. David Tax Law

J. David Tax Law develops personalized strategies based on your financial situation, exploring options such as offers in compromise or currently non-collectible status to help you resolve your payroll tax debt. Our attorneys negotiate directly with the IRS to secure favorable resolutions, including reducing penalties and setting up feasible payment plans.If paying your payroll tax debt in full isn’t possible, we help set up manageable installment agreements to help you repay your debt over time.

penalties, interest, and potential IRS enforcement actions, including liens or asset seizures, if not addressed promptly.

If time is running out on your payroll tax debt—call us now to get the relief you need with J. David Tax Law’s expert legal support!

Eligibility Requirements for Payroll Tax Debt Relief

Facing payroll tax debt can be a major threat to the survival of your business. The IRS takes unpaid payroll taxes seriously, and businesses that fall behind may face harsh penalties, asset seizures, or even forced closure. At J. David Tax Law, we understand how critical it is to resolve these issues quickly and effectively.

How to Qualify for Payroll Tax Debt Resolution

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Proof of Financial Hardship: We assist in gathering and submitting financial documentation, such as bank statements and profit/loss reports, to prove financial hardship. The IRS will review these records to determine if you qualify for relief.
Compliance with IRS Filings: Our team ensures that all necessary payroll tax forms, like IRS Form 941 and IRS Form 940, are filed, even if taxes are unpaid. Staying up to date on filings is crucial to maintaining eligibility for IRS relief programs.
No Recent Payroll Tax Violations: If your business has a history of repeated payroll tax violations, it may affect eligibility for relief. However, we help first-time offenders or businesses with minor infractions present a stronger case to the IRS.
Willingness to Enter a Payment Plan: We work with the IRS to set up an installment payment plan, demonstrating your commitment to resolving the debt over time and remaining compliant moving forward.
Cooperation with IRS Requests: Our tax attorneys help you respond to IRS inquiries and submit the required financial documents promptly. Cooperation and transparency are key to improving your chances of securing payroll tax debt relief.

Settle Payroll Tax Debt in Four Simple Steps.

Unlike many tax law firms, we offer personalized, hands-on service to ensure your payroll tax issues are addressed quickly and effectively.

Why You Need a Payroll Tax Attorney

Payroll tax debt can severely impact your business, leading to aggressive IRS actions such as penalties, interest accumulation, asset seizures, and even the potential closure of your company. Navigating IRS regulations and resolving payroll tax debt on your own can be overwhelming and time-consuming, often resulting in costly mistakes. That’s where J. David Tax Law stands out.

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While other competitors may treat your case as just another file, our experienced attorneys work closely with you to tailor a debt relief plan that protects your business, minimizes financial damage, and prevents future payroll tax issues. With a local payroll tax attorney, you gain the advantage of working with someone who understands the unique payroll tax payment challenges faced by businesses in your area.

What Can You Do If Your IRS Payroll Tax Debt Relief Fails?

If your IRS payroll tax debt relief request is denied, it’s crucial not to panic—there are still options available.

Consult a Payroll Tax Attorney

Our experienced payroll tax attorneys will review your case to determine why the relief was denied and identify the most effective alternative options. We’ll guide you through the next steps to secure resolution.

Consider Alternative IRS Programs

Even if one relief option is denied, we can help you explore other IRS programs like the Fresh Start Program or currently non-collectible status. These programs may allow you to repay your debt over time or pause collections if your business is facing financial hardship.

File an Appeal or Request Reconsideration

A denial doesn’t have to be final. We assist in filing an appeal or requesting reconsideration, addressing any issues that led to the rejection and presenting your case effectively to improve your chances of approval.

Review and Correct Documentation

Denials are often due to incomplete or incorrect paperwork. Our team will review and correct your IRS documentation, ensuring all forms and financial information are accurate, up to date, and fully compliant with IRS requirements.

FAQS

Frequently Asked Questions

Are payroll tax liabilities recourse debt?

Yes, payroll tax liabilities are considered recourse debt, meaning the IRS can pursue both the business and responsible individuals for unpaid taxes. This includes seizing personal assets if necessary to recover the debt. It’s essential to resolve payroll tax debt promptly to protect both your business and personal finances.

What is the statute of limitations on payroll tax debt?

The IRS generally has 10 years from the date the tax is assessed to collect unpaid payroll taxes. After this period, the debt may expire, but certain events, such as filing for bankruptcy or submitting an offer in compromise, can extend the statute of limitations. Consulting our payroll tax attorneys can help you understand how the statute applies to your specific case.

What is the impact of payroll tax debt on my business’s credit rating?

Payroll tax debt can negatively affect your business’s credit rating, especially if the IRS files a tax lien. This lien can lower your credit score, making it difficult to secure loans or other financing. Resolving payroll tax debt quickly can help prevent long-term damage to your business’s financial standing.

Is there a way to remove business payroll tax debt penalties if I have reasonable cause?

Yes, the IRS may remove penalties if you can demonstrate reasonable cause for failing to pay payroll taxes, such as significant financial hardship or unforeseen circumstances. Proper documentation is essential to support your claim. An experienced tax attorney can guide you through the process and improve your chances of penalty abatement.

What happens if I can’t pay my business payroll tax debt in full?

If you can’t pay your payroll tax debt in full, the IRS offers options such as installment agreements, which allow you to pay the debt over time. In some cases, you may also qualify for an offer in compromise, which could reduce the amount owed. A payroll tax attorney can help you explore these options and negotiate the best solution for your business.

Can the IRS seize business assets for unpaid payroll tax debt?

Yes, the IRS has the authority to seize business assets, including equipment, inventory, and even bank accounts, if payroll tax debt remains unpaid. Asset seizure usually occurs after repeated failure to resolve the debt or communicate with the IRS. To protect your assets and avoid escalation, contact a payroll tax attorney for immediate assistance.

Additional Resources

Unpaid Taxes

Delinquent Taxes? Here’s How to Settle with the IRS Before It’s Too Late!

Settle your delinquent taxes with the IRS in 2025! Avoid penalties, liens, and passport issues. Call J. David Tax Law at (888) 342-9436 for help today!

Unpaid Taxes

Can You Go To Jail For Not Paying Taxes

Can you go to jail for not paying taxes? Learn when penalties lead to criminal charges. Call (888) 555-1212 to protect yourself from tax evasion jail time.

Unpaid Taxes

Avoid the IRS Failure to Pay Penalty – 5 Ways to Fix Your Unpaid Taxes Fast

The Failure to Pay Penalty adds 0.5% monthly. Learn 5 Ways to Fix Your Unpaid Taxes Fast. Call (888) 342-9436 now to reduce penalties, and resolve your tax debt.

Payroll Taxes

How a Payroll Tax Attorney Can Defend Your Business Against IRS Payroll Tax Actions

Learn how IRS Form 433-B and our skilled tax attorneys can help your business tackle payroll tax debt and avoid penalties. Call us at (888) 342-9436 today!

Payroll Taxes

Get Your Payroll Tax Debt Under Control with IRS Form 433-B Assistance

Learn how IRS Form 433-B and our skilled tax attorneys can help your business tackle payroll tax debt and avoid penalties. Call us at (888) 342-9436 today!

Uncategorized

Why Hiring a Tax Attorney is a Wise Investment

See how hiring a tax attorney is a valuable investment for your financial future. Contact J. David Tax Law at (888) 342-9436 for tax advice.

Trusted by Clients, Recognized by Experts

We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.

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