payroll tax debt relief

Payroll Tax Debt Relief

Victory Tax Solutions 

“America’s Trusted Tax Team”

What is IRS Payroll Tax Debt? IRS Payroll Tax Debt is money owed to the IRS for failure to withhold and/or pay required taxes on behalf of your employees. Who is an employee? If you have the right to control what a worker does and how they do it, likely they can be considered your employee.

Most employers must withhold, deposit, report and pay several different types of employment taxes. These taxes include Income Tax, FICA and FUTA:

  • Income Tax: Money owed by the employee individually, taken from their wages to foster timely payment.
  • FICA: Social Security and Medicare taxes owed to the government. Half of the tax is owed by the employer, and half is owed by the employee.
  • FUTA: Federal unemployment tax, owed by the employer.

To determine how much federal income tax to withhold on behalf of your employees you should look at the W-4s you have on file for your employees. You can encourage your employees to file new W-4s at the beginning of each year, especially if they owed taxes on their most recent return.

Once you have properly withheld taxes from your employees these taxes have to be deposited and reported. At the end of each year a W-2 has be prepared for each of your employees that reports wages, tips or other compensation. 

It is extremely important as an employer that you withhold correctly and deposit the withheld taxes in order to avoid IRS Payroll Tax Debt. One form of IRS Payroll Tax Debt is a Trust Fund Recovery Penalty. A Trust Fund Recovery Penalty (TFRP) is assessed against the owner or manager in charge of employment personally. It does not erase or transfer the debt owed by the company, it just doubles the overall amount owed to the government.

The Trust Fund Recovery Penalty can be imposed on any person that the IRS determines to be responsible for paying, collecting, or accounting for the taxes and acted willful in not doing so. A responsible party can be a partner, sole proprietor, office of the corporation, or an employee of the business. If the responsible person pays other business expenses instead of withholding taxes the IRS can find that you willfully failed to pay taxes and impose a Trust Fund Recover Penalty. The penalty is the full amount of the unpaid trust fund tax plus interest.

It is important that you try to avoid Trust Fund Recover Penalty by making sure employment taxes are collected and paid to the IRS timely. Additionally, if the IRS is proposing an assessment of TFRP, or has requested an interview, you have the right to be represented through that process. Defending yourself against TFRP assessment can be tricky, as the IRS looks at many factors to reach their determination. Tax Attorneys are typically skilled in these situations, and may help taxpayers avoid significant personal payroll tax debt.

If you are having issues with IRS Payroll Tax Debt it is important you contact a Tax Attorney right away. Here at Victory Tax Solutions we dedicate ourselves to helping employers with Payroll Tax Debt or Trust Fund Recovery Penalties.

Call Victory Tax Solutions today to speak with one of our account executives. The call is toll free 1-877-772-0123.

Tax Relief Programs

by Louis Meeks on January 3, 2015 in Blog

Tax Relief Programs

Victory Tax Solutions, LLC

“America’s Trusted Tax Team”

Searching for the right tax relief program can be tricky, with the many avenues and guidelines that the IRS uses in establishing who qualifies for which tax relief programs.   When exploring your options, it is important to understand that the IRS provides standard deductions which determine what the IRS will allow as an expense for the household, against any income. Many tax relief programs are based upon the tax payers ability to pay.  So, how does the IRS determine whether they believe you have “the ability to pay”?

The answer lies in what the IRS refers to as “standard deductions”.  These “standard deductions” are used to determine how much “disposable income” you have to pay them back for back taxes.

As an example, the IRS might give you a “standard deduction” expense for your mortgage of $1,000 for your specific city and state.  Let’s assume you actually have a mortgage of $1,500. When looking at this example, the question arises as to whether the IRS allows you to deduct the  $500 of actual expenses from the mortgage when determining how much you can afford to pay them back.  The bad news is the IRS does not care, and does not give your credit for your real mortgage cost. In our example, your mortgage expense that exceeds the “standard deduction” ($500) is not allowed.  The IRS treats that extra $500 mortgage expense as if it does not exist.  This is the harsh reality that the IRS places on all of us taxpayers with back tax problems in search of a tax relief program.

As you can extrapolate from that example, the IRS is acting in their best interest, and not yours. As stated earlier, most tax relief programs are determined by the IRS rules on your ability to pay.

However, if you find a trustworthy tax resolution firm that understands the IRS tax code as well or better than most IRS agents, you will be in a much better position to get results that favor you.

At Victory Tax Solutions, we have many experts in this field are available on a daily basis here at Victory Tax Solutions. Our team, consisting of CPAs and tax attorneys are exactly that, experts. Let the professionals handle your tax issue. They know how to use the IRS codes against the IRS directly and can often resolve your tax issue in much more favorable terms than you can do yourself.

Some tax reliefs programs that are available for taxpayers are as follows:

  1. Several types of installment agreements
  2. Offer in Compromise
  3. Currently Not Collectible status
  4. Installment Agreements

The Tax Relief Programs above are just a few of the programs you may consider.  However….A friendly warning to all taxpayers reading this blog, DO YOUR RESEARCH!!!

Unfortunately, our industry is littered with tax resolution companies whose employees say all the right things on the phone to reel you in and get your money.  However, they do not deliver great results.  At Victory Tax Solutions, we have the most ethical team in the industry.  We have an “A” rating with the Better Business Bureau.  And, most importantly for you, we have the most client friendly full money back guarantee in the industry!

The Victory Tax Solutions team is led by Senior Tax Attorneys, CPA’s and paralegals.  We have a great combination of law school education, knowledge of the tax laws, experience working with the IRS and always working to get the best possible outcome for our clients.

If you are interested in learning more about all the different Tax Relief Programs you may be eligible for, please call Victory Tax Solutions today for a free consultation with one of our Senior Account Executives.  We would love to help you.  Our toll free number is 877-772-0123.

 

©2014VictoryTaxSolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links.

Offer In Compromise

by Louis Meeks on January 3, 2015 in Blog

OFFER IN COMPROMISE

Victory Tax Solutions, LLC

“America’s Trusted Tax Team”

An offer in compromise is a very advantageous hardship program that the IRS offers to certain taxpayers.  The taxpayer offers a fraction of what they owe to the IRS, typically 10-50% of the liability.

When individuals attempt an Offer In Compromise by themselves, the success rate averages 20%.

At Victory Tax Solutions, when our clients follow our recommendations and we prepare the offer, our clients’ acceptance rate exceeds 90%!

Our success rate is largely based on our screening process.  Any number of tax resolution companies will tell you they will “submit” an offer.  Whether that offer is likely to be accepted is a totally different situation.  The IRS has standards that must be met in order for the taxpayer to be considered a viable candidate.  Our tax attorneys are well versed and very experienced on the nuances the IRS uses to determine viability of an offer.  Nothing is more frustrating than making an offer, waiting six to twelve months, then having it rejected.

The IRS time frame for acceptance or rejection is approximately 6-12 months.  The good news is… While the offer is being considered, all collection activity is put on pause. The even better news is…. No wage garnishments or tax levies.

The following are a few of the criteria and success factors the IRS uses in analyzing Offer in Compromise applications:

  • One determining factor for success is tax compliance.  This means the taxpayer must be current on their tax filings, even if they owe back taxes.  The older the tax liability, the more likely it is to be considered.
  • The second factor is age of the tax payer.  The IRS wants to see the likelihood of the entire debt being paid within a certain amount of time. So in reality, the older you are, the better.
  • The third factor is related to the financial situation of the taxpayer.  This includes assets, liabilities, income and expenses.  A full disclosure of your finances must be included.  The IRS does a search for your bank accounts and assets, so being honest is crucial.  They will find out if you are trying to hide money and assets.
  • The fourth factor is education, training, and occupation.
  • Lastly, the IRS is extremely particular about how the offer is presented.  It must be very well organized and in a certain format.

The Victory Tax Solutions team is led by Senior Tax Attorneys, CPA’s and paralegals.  We have a great combination of law school education, knowledge of the tax laws, experience working with the IRS and always working to get the best possible outcome for our clients.

If you are interested in learning more about Offer in Compromise or any other IRS or state resolution, please call Victory Tax Solutions today for a free consultation with one of our Senior Account Executives.  We would love to help you.  Our toll free number is 877-772-0123.

©2014VictoryTaxSolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links.

Tax Relief Ann Arbor Michigan

by Louis Meeks on January 3, 2015 in Blog

Tax Relief Ann Arbor

Victory Tax Solutions, LLC

“America’s Trusted Tax Team”

If you are looking for tax relief in Ann Arbor Michigan, look no further than Victory Tax Solutions, LLC.  We are located on the south side of Ann Arbor near Briarwood Mall.

When determining which tax resolution firm to hire, the following considerations are very important to consider:

  1. Does the firm have full time tax attorneys and CPA’s on staff?
  2. Does the firm specialize in tax relief, thus doing this work all day, every day?
  3. Does the firm have an “A” rating with the IRS.
  4. Does the firm have only a few complaints with the BBB or other online sites?
  5. Does the firm have a 100% money back guarantee?
  6. Does the firm have at least a hundred testimonials to be found on the internet?

As you can see, there is an awful lot of due diligence to be done and facts to learn before placing your trust and putting your dollars to work to solve this important tax relief problem.

At Victory Tax Solutions, we serve clients all over America and have a specialization in providing tax relief for military members all over the globe!

Although it is not mission critical to use a local firm when trying to solve back tax problems, if you have a firm that meets all the criteria listed above, and is within driving distance, then you have hit the jackpot!

At Victory Tax Solutions, we love to have visitors come to our offices in Ann Arbor, Michigan.

We have clients drive from all Lansing, Kalamazoo, all of the Detroit suburbs, Grand Rapids, etc. to meet with us.  If you are looking for tax relief in Ann Arbor, come on in, we will buy you a cup of coffee or take you to lunch, your choice!

The Victory Tax Solutions team is led by Senior Tax Attorneys, CPA’s and paralegals.  We have a great combination of law school education, knowledge of the tax laws, experience working with the IRS and always working to get the best possible outcome for our clients.

If you are interested in learning more about all the different Tax Relief Programs you may be eligible for, please call Victory Tax Solutions today for a free consultation with one of our Senior Account Executives.  We would love to help you.  Our toll free number is 877-772-0123.

©2014VictoryTaxSolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links.