Monday, October 3, 2016

If you owe 941 payroll taxes and a tax lien is filed, you'll being hearing from...

In the nearly 30 years that our company, Washington Tax Services, has been around, we get many calls from businesses that owe 941 payroll taxes. These clients often get into touch with us via our other Blog which has posted frequently about 941 tax resolution and particularly about the "cold calling of tax liens" phenomenon.

AS anyone who owes 941 taxes knows, the filing of a tax lien will prompt phone calls from telemarketers based largely in Colorado. While the legality of the calls is questionable as the following blog post makes clearly: Cold Calling Tax Liens Legal? - just as importantly, what do these tax relief companies charge? Let's illustrate this thru a recent case example.

At the end of September 2016, we heard from a consultancy in Virginia that owed about $100,000 in unpaid 941 payroll taxes.  This debt was large enough to trigger a tax lien and calls from cold calling tax relief firms.

1. One company, a reputable one in Oregon, charged $10,000 to represent them.

2. Another firm in Southern California, offered to take on her case for a $20,000 fee.

3. We took on the case for $2750.00 - start to finish.

What kind of outcome would this client expect?

Well $50,000 of her debt was for 940 taxes (annual taxes) - returns the IRS had filed for her.  These were easy to fix. Replacing the returns the IRS filed for them - should reduce these to about $5,000.

Finally the other $50,000 in quarterly 941's looked fairly easy to deal with as well. This customer was looking to dissolve her business. We would direct the IRS to focus on the "Trust Fund" amount of the taxes (40% of the debt) - bringing the debt down to about $20,000 - this is possible when a business is looking to close.

So...client should see their debt go from $100k to $25k with our help. We thought $2750 was an appropriate value for our time. We even explained to the client our strategy up-front. The other firms were vague and just pressed the fear buttons in the client to get their bigger fees.

Have a 941 tax issue? Want a second opinion and less expensive option? Call Washington Tax Services now at 1-888-282-4697 or EMAIL us an explanation of your tax issue HERE and we'll contact you.  

3 comments:

  1. IRS Payroll Tax
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  2. Didn't send in my Payroll taxes
    Our unique approach has proven to be the right approach for our clients. This approach includes a complete investigation of your tax situation by a licensed tax attorney to gain a clear understanding of your tax problem. Once we have a clear understanding we will present you with best solutions for your tax problems.

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    Thanks for the post.
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