Monday, December 29, 2014

Welcome to the 941 Tax Problem Resolution Blog: Overview of Site

If you are a business that has fallen behind on 941 payroll taxes, you might have stumbled upon our 941 Tax Problem Blog today. Here's an overview of what this site has to offer:

STAYING OPEN with 941 tax issue

If your business has just had a "speedbump" in business and you have every intention to keep your business OPEN: you might consider an Offer in Compromise on your 941's. If you have burned a lot of bridges with the IRS - but think you can get back on track - you might look at Avoiding being Shutdown. And finally: if your business is solvent: here's an overview of your options: 941 tax problems in a nutshell


If you are OK with your "entity" going away - you have to consider the benefits of dissolution on your tax debt:  Dissolution of Entity with 941's - the Benefits. What if you want to dissolve and you have ASSETS? Here's some answers:  Dissolving a Company with Assets. As the IRS has three years to assess you personally for a 941 debt (corporation, LLC, partnership only) , you have to consider your exposure: Is the IRS pursuing a ghost?

Nonetheless, the staff of Washington Tax Services has been handling 941 tax problems for over 25 years. Have us troubleshoot your tax problem by calling 1-888-282-4697 or EMAIL us HERE and we'll contact you! 

Tuesday, October 7, 2014

941 Tax Resolution: Dissolution of Entity Has To Be Considered

There are a number of ways to resolve a 941 tax debt that your business has fell behind on:  Offer in Compromise, Payment Plan and Penalty Abatement - even Currently Not Collectible is an option. BUT the most neglected option is simple:  dissolving your business entity and starting over.

If you are a corporation, partnership or LLC, dissolving your entity - is almost an automatic 55% reduction in the debt and in some cases a 100% reduction. The only debt that will survive a Business entity's closure is the Trust fund portion of the 941 taxes. And these taxes have to be ASSESSED by the IRS against you.  If they don't get assessed, you also have a chance of NOT PAYING ANYTHING if three years pass after the tax is due.

So - why isn't dissolution the topic of tax professionals or company's that cold call tax liens to offer tax representation services? In our opinion, we think it isn't an option in their sales pitch because they might not be inclined to charge as much to do it? Or perhaps they might feel the business themselves can manage the dissolution without them?

Washington Tax Services has an entirely different approach. We believe Dissolution should be given as much consideration as Offer in Compromise or Penalty Abatement. Remember: dissolution is almost an automatic 55% discount of the tax and you don't have to go thru months of paperwork battles to achieve the result.

A couple of caveats on dissolution:

1. If you do dissolve your entity and start a new entity - we strongly encourage you to stay current on taxes - the IRS can prosecute you for pyramiding if you are perceived as someone who opens and closes businesses repeatedly to avoid paying taxes.

2. When you do dissolve - the assets of the business are "in-play" essentially in the dissolution process . We may need to disclose their auction value to the IRS or at the very least document the value of assets to be safe if the IRS scrutinizes a past dissolution in the future. 

Has your business fallen behind on 941 taxes? Let's discuss every option under the sun - including dissolution. Call the Tax Resolution Experts at - 1-888-282-4697
or EMAIL us HERE and we'll contact you!

Tuesday, July 1, 2014

Tax Issues For Businesses Include State Employment Taxes as well as 941's.

Businesses that are having growing pains and who fall behind on their taxes - often find that they not only owe the IRS for 941's but State tax withholdings as well. If you are in California, for example, you might owe the EDD. Just as in the case of resolution of 941's, resolution of a state withholding issue has the following general outline:

1. Is your business going to grow and remain solvent? If this is the case - some kind of payment agreement needs to be negotiated by you or your tax professional and then later a request to waive penalties can be requested.

2. Is your business destined for dissolution and closure ? If you just can't make your business work - you might consider shutting down. Your professional will help mitigate the damage to you personally.  Quite possibly - you personally might avoid any kind of assessment. 

3. Do you believe in your business - yet believe you'll need to dissolve your entity and start over?  You might have had a bad couple of years but believe your business model has a future. If this is the case just like in example #2 above - you might consider dissolving your entity and starting from scratch with a new entity. Your tax professional will help you mitigate the damage to you personally. You'll just have to be a model business in your next go-around and be sure to be current on taxes.

Owe State Withholding? Owe 941's? Let's look at your specific situation together. Call us at 1-888-282-4697. Marty Griffith, tax resolution expert at or EMAIL us HERE and we'll contact you!

Monday, May 19, 2014

What happens when your don't file 941 payroll Taxes? Substitute for Returns (SFRs)

Many businesses that find our company - -  are in a quandary: they didn't file their 941 tax forms because they were afraid to as they might owe. Most of these companies did submit W2's for their employees to Social Security Administration - but they didn't file 941's with the IRS. Well - as you would expect - the IRS eventually comes after these businesses by

1. Filing SFRS - (Substitute for Returns) using the W2's as their basis for the 941's.


2. Doing an IRS audit - where the auditor essentially asks you to file the 941's thru them.

What do late 941's mean to you and what is the significance of the SFRS?

As we alluded to in an earlier post - the IRS has three years to assess the trust fund against you personally for a Corporation, Partnership or multiple member LLC. However - if the balances are created as SFR's - there is NO STATUTE TO COLLECT. The IRS can collect the SFRS without a 3 year rule.

Has your business NOT filed 941's in a while? Or do you currently owe? Let's talk. Call the tax resolution experts at Washington Tax Services, 1-888-282-4697 or EMAIL us HERE and we'll contact you!