Unpaid 941 or Payroll Taxes? 941 Tax Debts? Back 941 Taxes?
If you operate any business with employees than you are responsible for filing the quarterly 941 tax returns and making Federal Tax Deposits based upon the amount of monies withheld from employees by the company. How and when you make your Federal Tax Deposits will depend upon the overall employment tax liability of the company.
Unpaid 941 or payroll taxes creates a large and very serious problem for a number of businesses and business owners within the United States. When such taxes are not paid, not only is the company liable for the payroll taxes, but the individuals within the company can be personally assessed the trust fund portion of the 941 tax debt through the Trust Fund Recovery Penalty regardless of what type of business entity you are. The trust fund portion is the amount of money withheld from an employee’s paycheck for federal withholding, social security and Medicare. Basically, this money is being held in “trust” to be paid over to the federal government. The IRS conducts The Trust Fund Recovery Penalty Interview or the 4180 Interview to determine which individuals within the business were the willful and responsible parties for failing to deposit the payroll taxes. After the IRS had made their decision based off of the interviews the parties are forwarded a notice regarding the IRS’s intent to personally assess them the trust fund portion. The individual(s) have 60 days from the date of such letter to appeal the assessment.
When owners of the business are assessed the trust fund portion of the 941 debt, the IRS can then file liens against such owners personally and move forward with collection of the tax debt from the individual owners personal assets, bank account etc. Further, the trust fund assessed to the individuals within the company is joint & several liability meaning that the IRS can come after any individual to collect the entire amount of the trust fund.
The good news is, if your business owes 941 taxes, you may be able to resolve the tax debt by only paying a portion of the corporate, LLC or business tax debt.
If your business has 941 tax debts, or the IRS has asked you to conduct the 4180 Interview, or you have personally been assessed the trust fund portion of the 941 taxes, we highlyrecommend that you seek competent advice from a tax professional regarding such tax debt. A 941 tax debt is so serious because it not only affects your business and business assets, but your personal assets as well.
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