Payroll Tax Debt Relief


Every year, many business owners find themselves in an unfavorable situation with the IRS due to their failure or inability to pay payroll taxes. This payroll tax debt can easily accumulate, causing business owners to feel overwhelmed and hopeless. In many cases, the stress of looming tax roll debt can cause employers to fall further and further behind on their outstanding payroll taxes. However, if you are struggling to pay your payroll taxes, it’s essential to take action as soon as possible. 


If or when the IRS contacts you about overdue payroll taxes, it’s important to respond. If you fail to respond to an IRS notice regarding outstanding payroll taxes, it will only worsen your situation. Employers and business owners feeling trapped with payroll tax debt should consult a skilled tax resolution lawyer. An experienced attorney can represent you to the IRS, assist you with settling your tax debt, and keep your best interest in mind. Here is some important information to know about payroll tax debt in California. 

Payroll Tax Debt Relief

Businesses or employers that have overdue payroll taxes or failed to withhold taxes from their employees’ paychecks may need payroll tax debt relief. Whether the taxes weren’t paid because of a mistake or an inability to pay, you will still need to pay the IRS. If your payroll tax debt continues to go unpaid, the IRS may choose to levy your bank account. Luckily, business owners struggling to pay their payroll taxes can take advantage of a variety of repayment options. 

Employers Must Withhold Payroll Taxes

By law, employers are required to withhold payroll taxes from their W-2 employees’ wages. All employers must file IRS Form 941 to pay both their portion along with their employees’ portion of payroll taxes to the IRS. Taxes that employers must pay include Social Security, Medicare, federal income taxes, and unemployment tax. It is important to note that in order to file and pay unemployment taxes for all of their employees, employers must file Form 940 in addition to Form 941. If for any reason, employers fail to pay these payroll taxes, the IRS will add additional fines or penalties to their outstanding tax debt. The IRS has a few routes to pursue for repayment of payroll tax debt, including liens, levies, and garnishments from business revenue. 

What Happens If I Fail to Pay Payroll Taxes?

When it comes to an outstanding payroll tax, the IRS can be aggressive in pursuing repayment. In fact, since failing to pay payroll taxes is technically stealing federal money, it can be considered a federal offense. When The IRS identifies a business that owes payroll tax, they will assign a revenue officer to the case. This revenue officer will either contact the business owner by mail or in-person to request payment. Business owners should be aware that unpaid payroll taxes can accumulate at a faster rate than regular income taxes. This means the resulting penalties and fines can be overwhelming. Additionally, if the IRS chooses to classify your unpaid payroll tax debt as a federal offense, they can pass along your case to the Department of Justice, which can have a lasting impact on the health of your business. Ultimately, the best way to find relief from unpaid payroll tax debt is to consult a skilled tax resolution lawyer. 

Choose Morgan Sebastian Law for Payroll Tax Debt Relief

If you are struggling to pay any outstanding payroll tax debt, it’s essential to act as soon as possible. At Morgan Sebastian Law, Attorney Becky Sebastian is eager to help you navigate the complexities of handling outstanding payroll tax debt. As a trusted tax resolution lawyer, Attorney Becky Sebastian has years of experience representing individuals who have been audited by the IRS.  She can provide you with the professionalism and peace of mind you deserve when dealing with the IRS. You can count on her to collect all the documentation needed to achieve a favorable tax resolution.  


To schedule a consultation with an experienced tax resolution lawyer, call (877) 223-6605 or fill out our online contact form

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