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Washington Tax Services has been assisting individual taxpayers and small businesses with their past due tax troubles since 1989.  Whether you have been dealing with the IRS for years and can't get caught up, or are just now falling behind and don't know where to begin - We know the tax collection system and have the experience and expertise to get you the best results possible under the law. 

When a business employs people besides just the owner, the government assesses to that business 940 and 941 Taxes, also commonly referred to as Payroll Taxes.  940 Taxes represent the Federal Unemployment Taxes that all businesses must pay as determined by the Federal Base Wage rate. 941 Taxes are those deductions which a business is required to take from its employees' wages as contributions into the Social Security and Medicare trust funds, as well as any Income Tax Withholdings that may have been taken on behalf of those employees.

Oftentimes when a business is just starting out, or when it experiences a slowdown in sales, it finds itself lacking sufficient capital reserves to sustain operations.  As the owner attempts to keep the business afloat with diminishing funds, he or she may confront the impossible choice of either paying for inventory, wages and other necessary operating expenses, or making its Payroll Taxes on time.  Almost invariably, the Payroll Taxes lose out.

Unfortunately, the IRS more or less considers this "stealing" from the Federal trust funds, and so this is probably the area of taxation where their collections activities are the most aggressive.  By seizing essential property and accounts receivable, the IRS can literally destroy a business if it doesn't make its quarterly Payroll Taxes.  Furthermore, 940 and 941 debts are subject to sizable penalties and can even lead to civil action against the responsible parties in cases of extended neglect.

But despite the seriousness of such a situation, the IRS is not entirely unreasonable in dealing with Payroll Tax debts.  Resolution is available if a person can show that there was good cause for falling behind and that they had no intentions of defrauding the government.  (However, you will need to make a stronger defense than simply, "I didn't have a choice!")  Generally, Payroll Tax issues will be settled by implementing some Tax Resolution program such as an Offer in Compromise or a Penalty Abatement Request.  It is also highly recommended that Professional Representation be utilized in these cases because of the increased complexity and greater likelihood of aggressive collections tactics associated with 940 and 941 debts.

At Washington Tax Services, our Consultants receive not only updates on IRS policy, but also continual training about the common business practices that get taxpayers into trouble.  It is this commitment to professional education, coupled with a sincere concern for our clients, that allows us to ask the truly insightful questions which cut to the root of the matter.  Not only can we help you resolve your Payroll Tax issues, but we can also help you diagnose where your problems occurred in the first place, so that you will be better prepared to avoid them in the future.  

For More information on how you can resolve Payroll Tax issues, please call today: