A Shifting Economy In Las Vegas Results In Payroll Tax Problems For A Growing Business

As the Las Vegas economy shifted from full-speed ahead to a downturn reflecting the overall economy, numerous business owners found themselves in financial difficulty. A client of the Tax Resolution Institute with a number of small business ventures found himself with serious payroll tax problems. Originally the owner of a small motel on the outskirts of the main strip, the client had expanded his business to include a theme restaurant and a novelty store during the recent boom.

When hard times arrived, the client chose to rob Peter to pay Paul by using the Trust Fund from his employee’s Federal Payroll Tax Withholdings to cover business costs. He figured he had plenty of time to make up the difference when the time came to actually deposit the payroll taxes with the Internal Revenue Service. Unfortunately, other financial problems arose, and the business owner found himself unable to cover the funds owed. With the IRS enforcing payroll tax cases with real severity and the Trust Fund Recovery Penalty, known at the 100% penalty, being so extreme, the business owner found himself in dire straits. When he contacted the Tax Resolution Institute, it looked likely that his payroll tax debts would lead to the closing of his business ventures and eventual bankruptcy.

Mind you, even if the business owner had ended up declaring bankruptcy, the trust fund amount he owed in the payroll tax case would not have been dischargeable. Trust Funds Recovery Cases are so severe because bankruptcy does not apply as a protection. Once you have taken money owed by your employees from the Internal Revenue Service and the Federal Government, there is no easy way to avoid paying it back in full. When the Trust Fund Recovery Penalty and the Interest Compounded are added to the total, it often leads to the end of many viable business ventures. Luckily, our client in Las Vegas came to the Tax Resolution Institute before his payroll tax problem turned into a fatal catastrophe for his business ventures. By being able to take action quickly and knowing the ins and outs of the Internal Revenue Service, the tax experts at TRI can provide our clients who have either payroll tax problems or income tax problems with true and effective tax relief.

Peter Stephan effectively negotiated with the Internal Revenue Service to reduce the amount owed to the actual existing Trust Fund. Raising funds from the equity in his business ventures, our Las Vegas client was able to put together the funds to cover everything he owed. Like any collection agency, the focus of the IRS is to close cases and get the base amount owed recovered.

When the Tax Resolution institute offered to have the client pay that amount in full, the rest of the penalty and interest was waived so the case could be closed. Rather than having to close his doors, our client merely chose to sell off the novelty store, keeping his theme restaurant and his motel open and profitable. Without question, his mistaken choice to use his employee’s Trust Fund to cover his bills could have led to disaster. Thank to his decision to reach out for help, a bad decision did not grow into a fatal blow for his company.

Since Nevada has no state tax, many business owners in Las Vegas and Laughlin, Reno and Carson City, make the mistake of taking a casual approach towards their Federal payroll taxes. Such an approach is nothing less than deadly when it comes to the future success of any business venture. If the downturn in the Nevada economy has led to serious payroll tax problems, if you have taken from Peter to pay Paul, then please contact the Tax Resolution Institute, and we can help you to find the tax relief that you need to ensure the future viability of your business.