You can be released for the Misdeeds of Your Spouse… If You Know What Steps to Take. Under certain circumstances, you may be relieved of any misdeeds of a spouse or former spouse involving income tax fraud. Under the current tax code, the IRS has the power to release a spouse from direct financial liability for unpaid taxes. This release from responsibility for having to pay tax debts of the other spouse (or estranged spouse) is called innocent spouse relief. The IRS understands that there are some unique situations in which a spouse cannot be held responsible for mistakes solely attributable to the other spouse. To ensure yourself the best possible outcome, it is best to take action as soon as you realize there is a problem. You must request innocent spouse relief or separation of liability relief no later than 2 years after the date the IRS first attempted to collect the tax from you. For equitable relief, you must request relief during the time the IRS has to collect the tax from you. If you are looking for a refund of tax you paid, then your request must be made within the time period for seeking a refund, which is generally three years after the date the return is filed or two years following the payment of the tax, whichever is later. We can review your situation and help you determine your options and file for Innocent Spouse Relief when necessary.

The IRS views failing to pay payroll taxes as the cardinal sin of tax delinquency because a large portion of the payroll taxes is your employees’ withholdings. Not paying your company’s payroll taxes is equivalent to stealing your employees’ money in the eyes of the IRS. If the IRS even senses that you are trying to avoid taxes by failing to pay payroll taxes, not only will the IRS impose expensive penalties and interest fees, but you could also be charged with a federal crime. Unpaid payroll taxes, therefore, could cause a business owner to lose his or her freedom and could completely close down a business. This means it should be an employer’s primary responsibility to collect federal taxes and the employee portion of Federal Insurance Contributions Act tax and pass this money on to the IRS. Because it is considered a trust tax, the IRS views non-payment of payroll taxes as theft, and the IRS notice process will be accelerated. As a result, penalties for failing to pay your payroll taxes and filing your payroll tax returns on time are much more severe than other types of penalties. . The IRS is extremely aggressive in pursuing collections of this type of tax. They would rather seize your business assets, close you down, sell your assets at auction, and put you out of business than allow you to continue amassing additional payroll tax liabilities. If payroll taxes are due to the IRS, the agency can come after your business assets and personal assets.

A civil penalty assessed by the IRS against a party, or parties, deemed responsible and willful for not turning over certain employment (payroll) taxes to the government in the form of payroll tax deposits. These taxes are commonly known as trust fund taxes, because employers are required to hold the taxes “in trust” until they are turned over to the IRS. The total unpaid trust fund taxes of a corporation or LLC can be converted to a TFRP against one or more parties (usually the business owners). At this time, a business tax liability becomes a personal tax liability of the responsible party. After this occurs, the IRS will begin the collection process against the individual taxpayer. If you are behind on payroll taxes, you should get the help of a professional who understands tax law and the way the IRS operates. The way you handle your initial contact with the IRS can make or break your chances of staying in business. DO NOT meet with the IRS on your own. How you answer their initial questions can determine whether you stay in business or not. It is critical you hire a professional representative who knows how the IRS operates. If you have payroll tax problems, there are solutions available to you! We have helped business owners stay compliant with their IRS requirements and protect their businesses. We know how important your business is to your income and your livelihood. Creating a solution for your payroll tax problem shouldn’t just be about helping you avoid the need for IRS Tax Help; it should be about saving your company from being seized. Most importantly, it’s about safeguarding your freedom. We help our clients by assessing their current situation and helping them find answers that will best preserve their ability to stay in business. If you are delinquent on payroll taxes, contact us today!

If you cannot pay all tax currently due an IRS installment agreement may be your next best option. A taxpayer agrees to make regular monthly payments to the IRS until the balance is paid in full when they agree to an Installment Agreement (Payment Plan). The IRS calculates the amount of the monthly payment for each person based on the taxpayer’s income, allowable monthly expenses, and the time remaining in their Statute of Limitations. The IRS makes various Installment Agreement programs available to taxpayers, such as:

• Streamlined Installment Agreement

• Fresh Start Streamlined Installment Agreement

• Partial Payment Installment Agreement

• Tiered Installment Agreement

The IRS cannot levy against your property (1) while your request for a Payment Agreement is under consideration, (2) while your agreement is in effect, (3) for 30 days after your request for an agreement has been rejected, or (4) for any period while an appeal of the rejection is being evaluated by the IRS. Once the Payment Plan is in place, the IRS Collection Division will not bother you, as long as you are current in your tax filing and a e compliamt.