How Can I Settle For Less When I Have Unpaid Payroll Taxes?

If you are an employer, one of the worst scenarios that can occur to you is an audit of your unpaid payroll taxes by the state unemployment department. This can be a very stressful time for the employer and in some cases might actually force him or her to go out of business. In addition to the stress that this will bring to both the employer and his employees, the penalties that come along with not paying these taxes are generally very high. Not only do the state unemployment tax laws require the employer to pay these taxes, but there may be other personal liability issues as well.

When you receive a notice from the state unemployment department or the IRS about unpaid payroll taxes, you have two choices. You can pay them what you owe, which in most cases means just paying the interest and penalties until they are paid off, or you can choose to appeal the amount you owe. If you choose to appeal, one of your first steps should be to send in the tax form that was deficient, along with your proof of income and an explanation letter explaining the circumstances of the non-payment. The appeal process starts off with a letter from the state unemployment department that explains why you are in default. Usually this consists of a few paragraphs describing why you did not know that you owed this money.

If you do not make good on your promise to pay, the next step is to send in evidence that you did not pay the back payroll taxes. This could include a certified copy of your paycheck stub showing that you were not paid, a statement showing that you made no payment, a recording of the in-person or mail failure of the pay stub, and so on. Along with the payment request, the unemployed person should attach a few recent pay stubs showing that he or she is still employed. Along with attaching the payment stubs, the person should also include any proof of income that he or she includes with the letter. Once you have this information, you should prepare to fight these charges. It is not in any way a good idea to acknowledge guilt before you are proven innocent.

The most important thing that you can do, if you owe unpaid payroll taxes, is to hire an attorney to represent you in your battle against collection efforts. There are many tax professionals who will help you with this step, but you need to find a trusted professional through this website. Many tax professionals will use unscrupulous methods to contact you, like sending automatic messages or by phone to your work address or your place of employment. This means that if you are not at home or at work when the collection agent knocks on your door, you will be contacted.

Another thing you can do is to notify the IRS that you will be representing yourself in your appeal. Not only can you not be responsible for any penalties that come up, but the government has to prove that you should have paid for these additional funds. If you are represented by the same attorney that you signed a loan application form, then the attorney may not have to prove anything more than that you should have paid the payroll taxes. The government has to prove that the withheld federal income taxes were your responsibility. If the attorney can show that you were not responsible for withholding the extra money, then he or she can usually get you out of any penalties that you owe.

If you need legal help to settle your unpaid payroll taxes, then you need to know what options are available to you. The IRS will not just take your money right away. They can try to send you notices or garnish your wages. These types of legal actions can be very expensive, so business owners should try all of their options before they settle for the first legal settlement they find. Some business owners choose to pay back the payroll taxes, but this does not help the economy and in fact, it actually decreases employment. Business owners can try to negotiate with the IRS, but the IRS is usually better off to just let the delinquent taxes go because it means nothing for them. For more information, click here: https://www.britannica.com/topic/taxation.