AS we wrote a few posts back, if you have a Corporation, Multiple Member LLC or Partnership and you owe 941 taxes, you can avoid personal assessment of these taxes against you if you can run out a three year clock. A recent case of ours illustrates how one individual avoided being assessed the trust fund taxes on about $250,000 in 941 taxes.
This individual in Minnesota contacted us originally in February of 2012. This client was audited on his 941's and we represented him on that case. Once the business was assessed 941 taxes, we told the customer that if he was very lucky maybe the three year clock would pass and he wouldn't be personally assessed (!).
When he contacted us again in the fall of 2015, we were glad to report that the Statute to collect the 941 tax against him had expired. The IRS agent assigned to his case conceded so. The client just paid off his most current taxes, dissolved his company, and essentially walked away from a quarter million dollars in payroll tax.
Not everyone will get this lucky. But if you do owe old 941 back taxes, it is an important consideration if you are one of the entities above (Sole props are the exception to this rule).
Washington Tax Services is approaching its 30th year of assisting tax problem clients. Call us at 1-888-282-4697 to discuss your 941 tax or other tax issue or EMAIL us a description of your tax issue HERE and we'll contact you.
Monday, March 21, 2016
Friday, October 9, 2015
How Does the IRS make 941 - Substitute for Returns? Pretty Easy: Using your W2's.
If you are a business that has forgotten to file your 941's, the IRS sometimes might file them for you. They file these Substitute for Returns(SFR's) by collecting your W3 information which summarizes your employee's W2's, info which is found at the SSA. The IRS usually get the amounts correct. But you certainly can refile the 941's to replace the "SFR's."
What if you didn't file W2's either? Well - that definitely is a situation where you will benefit calling watax.com. In almost all circumstances, you want to file the W2's - you owe it to your employees who had paid into the system for themselves. But there's a lot of issues to discuss - particularly when your business is closed or closing, etc.
Washington Tax Services, 26 years in business solves 941 issues. All kinds - no matter how ugly or complex. Please EMAIL us a description of your tax issue HERE and we'll contact you or call us at 1-888-282-4697 - Monday to Friday and our experts will discuss your 941 issues with you.
What if you didn't file W2's either? Well - that definitely is a situation where you will benefit calling watax.com. In almost all circumstances, you want to file the W2's - you owe it to your employees who had paid into the system for themselves. But there's a lot of issues to discuss - particularly when your business is closed or closing, etc.
Washington Tax Services, 26 years in business solves 941 issues. All kinds - no matter how ugly or complex. Please EMAIL us a description of your tax issue HERE and we'll contact you or call us at 1-888-282-4697 - Monday to Friday and our experts will discuss your 941 issues with you.
Monday, May 11, 2015
If you have a Tax Lien Against your Business, What's Next? Depends on Your Business...Primarily.
As we have written in previous posts on the 941 Tax Problem Blog, if your business has a large enough 941 debt - you'll probably be getting a call from one or several telemarketers in Colorado. Many of the companies are legit - maybe pricy - but several of them have logged some time in the field of representing taxpayers. Nonetheless, if a tax lien has been placed on your business, it's safe to say it's game on - the IRS has selected you as a company that they are going to pursue.
In the most simple terms, the resolution of your 941 tax problem is going to be dependent on the direction your company will take:
Will your business ...
1. Grow?
2. Tread water?
3. Or tank?
Your business is growing? If your business is going to grow and whatever happened before was just a hitch, then you are likely going to be set up into a PAYMENT plan and have a chance to WAIVE penalties on the back end.
Your business is treading water? If you are surviving - paying current payroll taxes and normal business expenses and not much else, then you might just hit the sweet-spot of settling the debt thru Offer in Compromise or having case closed as Uncollectible.
Your business is tanking? If you are business can't be helped, it might be time to consider DISSOLUTION and the positive ramifications that might have your 941 tax problem.
Washington Tax Services and it's knowledgeable consultants is ready to discuss the nuances of your 941 tax problem and offer a solution to your tax problem. Call us at 1-888-282-4697 or email us your tax situation HERE and we'll call you.
In the most simple terms, the resolution of your 941 tax problem is going to be dependent on the direction your company will take:
Will your business ...
1. Grow?
2. Tread water?
3. Or tank?
Your business is growing? If your business is going to grow and whatever happened before was just a hitch, then you are likely going to be set up into a PAYMENT plan and have a chance to WAIVE penalties on the back end.
Your business is treading water? If you are surviving - paying current payroll taxes and normal business expenses and not much else, then you might just hit the sweet-spot of settling the debt thru Offer in Compromise or having case closed as Uncollectible.
Your business is tanking? If you are business can't be helped, it might be time to consider DISSOLUTION and the positive ramifications that might have your 941 tax problem.
Washington Tax Services and it's knowledgeable consultants is ready to discuss the nuances of your 941 tax problem and offer a solution to your tax problem. Call us at 1-888-282-4697 or email us your tax situation HERE and we'll call you.
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
CLOSING THE ENTITY WITH 941 tax issue OR DEALING WITH AN OLD DEBT
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!
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
CLOSING THE ENTITY WITH 941 tax issue OR DEALING WITH AN OLD DEBT
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 watax.com - 1-888-282-4697 or EMAIL us HERE and we'll contact you!
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 watax.com - 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 watax.com or EMAIL us HERE and we'll contact you!
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 watax.com 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 - watax.com - 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.
or
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!
1. Filing SFRS - (Substitute for Returns) using the W2's as their basis for the 941's.
or
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!
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