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What Are the Options For IRS Payroll Tax Settlement Plan?

There are many times we heard or seen on the news about a company that has filed for bankruptcy, shut down, or has reduced its staff. One of the most probable reasons is the failure of the company to pay or settle their unpaid payroll taxes, known as employment taxes. So it is better to know and find the most suitable resolution for the IRS payroll tax settlement plan that best suits the company.

What Are Payroll Taxes?

Payroll taxes are the amounts of money that an employer withholds from the employee to pay for their taxes to the government. It can also be the amount of money an employer withheld from the employee to pay for their Social Security and Medicare. These amounts of money withheld are deducted from the employees' net wages and sent to the IRS.

In most cases, the obligation to settle the payroll taxes is not taken seriously or ignored by the employer or the company. And this will result in the closure of the company, also a seizure of the company's assets. In addition to this, if the company is found guilty or even remotely responsible, they may be charged under the Civil Trust Fund Penalty and have to pay the whole amount themselves.

How To Settle Payroll Taxes?

Organizations or companies that have fallen behind on payroll taxes can find a resolution as the IRS is known to settle unpaid payroll taxes for countless companies. If approached properly, it is willing to work with the company and come up with an agreement on different payment plans that can be paid over a duration of time.

Installment Agreement

This is one of the payment plans that can be worked out with the IRS to settle the unpaid back payroll taxes in easy manageable equal monthly installments.

Partial Payment Installment

Through this payment plan, the company needs to provide a form that calls for detailed information about the income, liabilities, and assets of the company or organization.

Offer in Compromise (OIC)

This settlement plan will work only if it is in the best interest of both the organization and the IRS, wherein the company complies with all the future payments and filings.

Currently Not Collectible

If the IRS finds that the organization cannot pay its back taxes, then the payroll taxes are simply put off for now.

When the need arises to settle payroll taxes, the first thing that needs to be done is to get professional help. For reliable and prompt payroll tax assistance in your area, call and hire the professional IRS tax attorneys at Tax Experts For America today!

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