Providing tax relief services and payroll tax solutions to businesses across the country, the Tax Resolution Institute is proud when our tax experts are able to keep the doors open of a once thriving business in Newark, New Jersey by averting a serious payroll tax problem with the IRS. In tough economic times, companies across the United States are finding themselves in a financial tax squeeze, unable to avoid dipping their hands in the trust fund owed to the IRS in order to cover outstanding debts and immediate costs. What most company owners do not understand is that playing with Payroll Taxes and the IRS Trust Fund is like playing with fire — there is a good chance that your casual choice will leave your business ventures in flames, burning down your future hopes of profitability.
In Newark, New Jersey, a once thriving high-end fish market found their business under the gun when demands by restaurants for the expensive end of the catch began to die down with the recession. Suddenly, although the fish market had the same number of workers to be paid and continued to take on large and expensive catches due to pre-existing contracts, the fancy fish were left either to go bad on ice with freezer burn in their warehouse or had to be sold at virtually pennies on the dollar. In either case, profits quickly dried up, and the owners of the fish market found themselves under the gun — bills to pay, costs to cover, and not enough money coming in the front door.
Unpaid Payroll Taxes Threaten A Newark Fish Market
Although they managed to cut back by reducing their staff, they had faith in the return of the good old days and they did not want to seem week and lose their best customers that still remained. In the thick of the financial storm, it was important to show a brave face. As the recession deepened and sales continued to decline, the initial payroll tax crisis became a real disaster, threatening to permanently close the doors of the fish market. Although the owners had yet to hear from the IRS, they knew it was only time before the other proverbial show dropped. With America in a recession and the federal government in distress, the Internal Revenue Service is going after unpaid payroll taxes with a renewed focus and energy, making sure that businesses are paying their fair share and covering the tax debt of the trust fund. If the trust fund comes up short, the trust fund recovery penalty kicks into action.
The Trust Fund Recovery Penalty, otherwise known as the 100% Penalty, is designed to keep business owners honest and protect the trust fund owed to the IRS. If the trust fund is not covered in full when due, the trust fund recovery penalty means the business owner will not only have to pay the original trust fund amount plus interest but will also be penalized 100% of the original amount due. Such huge penalties have sunk many a thriving business, leading to bankruptcies and closed doors.
Tax Relief Services Keep The Doors Open
Knowing the possible threat looming, the Newark Fish Market in New Jersey came to the tax experts at the Tax Resolution Institute for help. With extensive experience working with the IRS and negotiating workable outcomes in unpaid payroll tax cases, the Tax Resolution Institute is a refuge for companies when the IRS threatens to close their doors. By explaining the situation to the IRS Revenue Officer while offering immediate payment of the back payroll taxes owed, the 100& penalty was waived in order to keep the doors of the business open. In addition, an Installment Agreement was negotiated to cover the interest portion of the trust fund over a reasonable period of time as the fish market recovered from the financial crunch. Although times are still tough, the Tax Resolution Institute is proud to say that the doors of the Newark Fish Market in New Jersey remain open and the workers are still working.
