Representation

Trust Fund taxes include social security, Medicare, and income taxes that are withheld from employee wages as mandated by the federal tax code. This type of tax is paid by employees, but the employer is responsible for forwarding the employee-paid taxes to the government.

When this doesn’t happen, the IRS is quick to step in and take action against corporate officers, finance officers, business bank account signers/co-signers, financial partners, and limited liability company members. The IRS charges a Trust Fund Recovery Penalty (TFRP) to individuals assigned with the collection and remittance of these taxes but who don’t comply with the rules.

The process of stopping a trust fund recovery assessment is quite complicated. First, the target person or persons must file a written appeal. If this is not done, the IRS will personally assess the person or persons responsible for the liability. Usually at this point, the right is lost to challenge the trust fund recovery penalty. (Under certain circumstances, the right is not entirely forfeited. For example, if the target was not responsible for paying trust fund taxes or simply did not do it wilfully, there’s still a chance to appeal.)

As with other tax problems, appealing against a trust fund recovery penalty is an arduous process that requires expert care and insight. It is wise to confront the IRS with expert help. While it is possible to represent yourself, it is not advised because the stakes are high – and best left to the professionals. Certified tax experts are aware of every clause in the tax code and every situation in which you may be granted tax relief.

If you’re a victim of misdirected Trust Fund Recovery measures, contact Long Island Tax Resolution Services today. Trust Fund Recovery measures are extremely serious and may disrupt your ongoing business affairs. Our highly qualified tax experts will give you the representation you deserve, handling your unique case with the highest degree of care.

The IRS gives you the right to authorize an individual to represent you before them. Certified tax professionals are well versed with the federal tax code and understand the nuances of the power of attorney form.

Imagine a situation where your finances and livelihood are unknown. Instead of seeking help from someone who has gotten someone out of a similar rut, you choose to go out and take on an unknown entity with no backing, simply because you didn’t want to spend a little extra. Instead of saving a major amount and spending a minor one, you’re saving a minor amount and losing a major one.

This is what happens when you choose to take on the IRS for tax liabilities without any professional help. Tax professionals experience years of training and require a great deal of experience to be called ‘experts.’

The power of attorney form gives you the ability to appoint a certified tax professional to represent you before the IRS, and take care of all proceedings while causing you the least amount of headache. The form also reminds the agent that they are supposed to act in the best interests of the beneficiary. This isn’t to say that all tax consultants are the same. Take extra care to choose the right one.

The IRS allows many people to represent you before the IRS, including friends and family members, but in a situation where your finances hang in the balance, you must make the right decision and allow an experienced individual people to represent you.

The 3 types of professionals who are qualified to represent you before the IRS are:

• U.S. Department of the Treasury certified Enrolled Agents
• Attorneys
• Certified Public Accountants

A certified tax professional with years of experience dealing with the IRS will work to gain you tax relief. You will have to sign and send in Form 2848, which officially designates them as your tax representative, and he or she will have access to your financial documents, information, and background.

If you are a business owner or previously owned a now defunct business, you may be required to pay employment or payroll taxes to the IRS. These include social security and Medicare taxes to benefit workers and their dependents.

Employers are required to furnish two main payroll tax forms:

• Form 940 – The Employer’s Annual Federal Unemployment Tax Return (FUTA)
• Form 941 – The Employer’s Quarterly Federal Tax Return

Failure to fill and submit any of the above two forms is viewed as a serious offense, and the IRS may even initiate an audit to determine if there are additional parties from whom tax can be collected.

There are two very important things to understand about owing payroll taxes or employment taxes:

1. The penalties and interests accrued on tax debts of this kind increase exponentially in a matter of months.
2. It is extremely difficult to get tax relief schemes because the IRS can deem a company’s value higher than the taxes owed, which makes you unable to apply for any tax relief programs.

Owing employment/payroll taxes to the IRS is viewed as a major offense, and failure to repay on time can have serious financial consequences. For a company with an unstable financial situation, the IRS can add to this instability when it forces repayment. This often has the effect of further destabilizing the company. In extreme cases, the IRS may even close the company and liquidate its assets in an attempt to settle the debt. For now defunct businesses, previous owners can be examined and asked to settle the debts, which are sometimes large sums.

A certified professional tax expert will ensure your payroll tax and employment tax problems are solved as soon as possible. Without expert help, you risk losing your business or criminal prosecution. Long Island Tax Resolution Services will act as a liaison between you and the IRS to negotiate terms of settlement. Often, tax debts of this kind can be settled with payment plans, and they should be dealt with as soon as possible to prevent seizure of assets, financial instability or company closure.