Paying taxes on time is a civic duty and any deviation can lead to undesirable consequences. If you owe the government a payroll tax debt, the IRS (Internal Revenue Service) has a lot of tools to seek recourse, such as penalize you, take over your business, and seize your bank accounts. The only way to get out of such a problem is to face it head-on as soon as possible, but before you get to that point, here are a few prerequisites that must be followed to increase chances of success in your payroll tax negotiation. Read on.
Must Read: Solving Payroll Tax Problems for Companies
1. File Your Payable Tax Returns
To begin the payroll negotiation process, it is imperative to file your payable tax returns without delay. Make sure that you file all outstanding returns, even if you cannot pay them yet. This is important as the IRS will refuse your request for Payroll Tax Negotiations until you complete this step.
2. Make Current Payroll Tax Deposits
Once you are done filing unpaid tax returns, fulfill your current payroll tax obligations. If you want your payroll tax negotiation to be successful, comply with the current IRS tax liabilities by making the current payroll tax deposits. Before someone raises an issue over it during the negotiation process, make your current deposits as soon as possible.
3. File Form 433-B
Business owners that owe taxes to the government but cannot pay immediately must file IRS Form 433-B. You can download it from the IRS website. Fill out the form with complete and accurate information, as it helps the IRS determine the amount of money you can afford to pay each month on your unpaid debt to the government.
Must Read: How To Pay Payroll Taxes To The IRS
4. Provide Supporting Documents
After filing the Form 433-B, you are also required to provide the government with all the important documents to support the information given in the form. The documents are useful in keeping a record or verifying the information given in the form. The documents required may include recent payroll summaries, bank statements, proof of federal tax deposit statements, and a copy of your business’ monthly bills.
5. Send Written Request for Installment Agreement
If you cannot pay your dues at once, you will be required to put your request for an installment agreement in writing. Decide on an amount that you are able to pay each month and submit the request in writing rather than communicating verbally. A written request or document provides important evidence that protects you in the event of a dispute and during agreement modification.
6. Adhere to the Deadline
You and the IRS agent overseeing your case will decide on a date or deadline on which you need to submit the required documents and information regarding the outstanding payroll taxes. It is important for you to adhere to the dates and deadlines, as failure to do so will force the IRS to seize your money and business.
Must Read: The Law, Costs, and Benefits of Payroll Taxes for Employers
Way forward
IRS takes payroll tax returns seriously and slacks or delay in dealing with any issues can put your business and wealth at risk. To avoid such circumstances, it is essential for you to take each and every step with caution. If you are having trouble understanding or following the payroll tax negotiation process, call The Law Offices of Nick Nemeth. We are a reputable firm with a proven track record that helps people with IRS tax debt resolution. If you are facing IRS debt problems or have any questions on payroll tax negotiations, call us at (972) 426-2553 or fill out this form and we will contact you to schedule your free, no obligation, consultation with Attorney Nick Nemeth.
