Why Are So Many Small To Mid-Sized Companies Being Hit With Severe Payroll Tax Problems And Trust Fund Recovery Penalties?

The Trust Fund Of Employee Taxes Belongs To The Government

The Trust Fund Belongs To The Government

The Tax Resolution Institute has seen a sudden rash of payroll tax problems that involve unpaid payroll tax liabilities and trust fund recovery penalties sinking once thriving businesses. When the federal government in the form of the Internal Revenue Service gives a business owner responsibility over the trust fund of employment taxes, they expect payroll tax payments to be made on time or else. From our years of experience and respected expertise, we understand why this is happening in this challenging economy. Now we want to make sure that you do as well so your company is protected and your doors are never closed shut by IRS Revenue Officers.

There Is A Reason For Payroll Tax Problems

Here are several of the key reasons:

  1. Banks are rarely, if at all, lending to small or mid-sized companies. Even if you are an AAA-rated company with accounts receivables, the banks most likely have cut you off. One little bump in your cash flow road and suddenly you are not paying your payroll taxes on time. In desperate times, such a choice seems to make sense, but it is nothing less than a recipe for disaster with the IRS. A payroll tax liability is a disaster waiting to happen.
  2. Your customers are paying their bills slower because they have less money on hand and their businesses have contracted in the recent recession. Without past financial resources, once reliable clients simply do not pay when bills are due. Such lack of payments limits your capital and results in hard choices. Do you pay the rent or cover your payroll tax liability? The choice seems easy, but results in hard consequences with the IRS.
  3. The economy continues to be slow as the recession lingers way too long. High unemployment is still the norm and not the exception. Most small company’s are down to skeleton crews where only the most skilled workers remain. Mid-sized companies have had to reduce or eliminate whole divisions or departments. Since your company is not willing to let go of your most skilled workers, you will do anything to keep them and make sure salaries are paid. When you hit just one bump in the financial road, you choose to pay your employees and not the IRS. When your payroll taxes go unpaid, the future of your business is placed in serious jeopardy.
  4. If your business has a payroll-processing contract with ADP or Paychex, you most likely do not have the personnel in house to handle this work anymore. But these national companies are hardcore and not forgiving of a single mistake. If your company even misses one payroll payment to their payroll service or is late on one payroll tax payment to the IRS, their company’s contract is terminated by the big corporate payroll service. Rather than deal with such problems, monolithic payroll services have the resources to just wash their hands of small to mid-sized businesses. Once this happens, the payroll processing and tax liability compliance burden is back on your shoulders and payroll tax problems ensue.

Be Very Careful – Payroll Tax Problems Can Sink Your Business

Trust Fund Recovery Penalty Is The 100% Penalty

Trust Fund Recovery Penalty A 100% Penalty

Are any of the above reasons behind the rash of new payroll liability cases any surprise to you? The Tax Resolution Institute is sure your small to mid-sized business has experienced and been threatened in recent years by at least one of these problems. Our solution is to contact us for a free consultation so we can help resolve your payroll tax liability and keep the doors of your company open and the profits flowing. Payroll tax problems have closed too many once successful small to mid-sized companies in the past several years.

Don’t let this be you! If you have payroll tax problems threatening your business and need expert Tax Resolution advice, contact the Tax Resolution Institute for a free consultation. We are specialists in large payroll tax problems. For help, call 800-401-5926.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.