Today we are going to discuss how great tax debt help can save a significant sum of money, hardship, and difficulty when dealing with the IRS.
The IRS has an assessment called the Trust Fund Recovery Penalty which is used to assert a tax debt penalty to the responsible parties in a business when dealing with outstanding employment taxes. Tax debt help leads to the overall resolution of the trust fund recovery penalty process. The IRS has a 3 year period of time to do this. The 3 year statute begins upon the actual filing of the return and original tax assessment within the business. If the IRS misses this timeline, they cannot assess the taxpayer with the trust fund recovery penalty. The 941 tax is made up of Federal Withholding, Social Security, and Medicare taken out of each employees paycheck. The employer matches this amount as well. The Trust portion is the employee withheld portion only. Officers, shareholders, CFO’s, Treasurers, and Partners can all be responsible for the trust portion of the debt. If held liable, liens will be filed, levies will ensue and other collection action will take place against the individual. Our client sought out good tax debt help and by virtue of time, will be free and clear from the trust portion of the debt.
Prior to seeking tax debt help, our client ran a business and managed to incur a $302,000 liability to the IRS for employment taxes. These accruals took place over a 4 year timeline from 2003 up until 2007. The last ASED (Assessment Statute Expiration Date) expired on 4/15/2011. We estimated the trust portion of the debt to be around $180,000. We assisted our client with the closure of the old corporation as well. Filing final tax returns, retaining final bank statements, and appropriately dissolving the business with the State and the IRS are just some of the items required to dissolve a business. Fortunately our client will no longer be responsible for paying this back or at risk for assessment. As a leading tax debt help company we can assist in reviewing the IRS transcripts, reviewing the overall situation as it relates to a potential assessment, as well as helping the taxpayer understand the gravity of a situation such as the situation explained herein. We saved our client $180,000 in personal assessments and a total of $302,000 with the closure of the business.