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There’s help available for delinquent payroll taxes

On Behalf of | Mar 13, 2024 | Tax Law

If you are facing collection action from the Internal Revenue Service (IRS), you need to take action. This is not a time for avoidance. 

There is typically a path to negotiation. The following tips can help you create a workable payment plan that will get you current on your payroll taxes.

File those returns

As long as you have unfiled employment tax returns, you can’t negotiate a payment plan to pay off your balance. This should be your primary focus. The same applies to making current any outstanding quarterly payroll taxes. 

Familiarize yourself with Form 433-B

This is the Collection Information Statement for Businesses. To enter into negotiations with the IRS, you must complete Form 433-B first and detail all your business’s income, assets and expenses. This form is the tool the agency uses to determine what you can afford to pay toward your arrearages every month.

Get any agreements in writing

Your agreement should include when the payments begin, the amount you can afford to pay and the date range of the tax payments your agreement covers. Should you fail to comply with the terms of the agreement, you could face additional penalties and/or fines from the IRS. The IRS can work with you to help your business get and remain compliant with all outstanding business payroll taxes.

If this all sounds incredibly complex, do not get too anxious. Seeking guidance from tax professionals can help you better understand the situation and choose a path that will allow you to avoid similar situations in the future.