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Find out if You Qualify for Payroll Tax Debt Relief in Four Easy Steps!
Check Your Eligibility for Tax Settlement Today!
Payroll tax debt occurs when business owners fail to pay the required payroll taxes to the IRS. These taxes include federal income tax, Social Security, and Medicare contributions that are withheld from employee wages. Employers are responsible for collecting and remitting these taxes to the IRS on behalf of their employees. In that case, it accrues payroll tax debt, which can lead to severe tax penalties and obligations.
Every year, U.S. businesses lose millions of dollars to IRS payroll tax penalties, interest, and enforced collections — often because they waited too long to address the problem. Falling behind on payroll tax deposits or missing 941 filing deadlines can quickly escalate into overwhelming payroll tax debt that threatens your company’s survival.
At J. David Tax Law, our experienced payroll tax attorneys take decisive action to resolve urgent payroll tax issues before they lead to liens, levies, or asset seizures. We develop precise, strategic solutions for your situation — from offers in compromise to currently non-collectible status — and negotiate directly with the IRS to reduce penalties, stop interest from compounding, and arrange manageable installment agreements when paying in full isn’t possible.
Not every business automatically qualifies for payroll tax debt relief — the IRS evaluates each case based on specific criteria. Below are the key factors that may determine eligibility:
We assist in gathering and submitting financial documentation, such as bank statements and profit/loss reports, to prove financial hardship. The IRS will review these records to determine if you qualify for relief.
Our team ensures that all necessary payroll tax forms, like IRS Form 941 and IRS Form 940, are filed, even if taxes are unpaid. Staying up to date on filings is crucial to maintaining eligibility for IRS relief programs.
If your business has a history of repeated payroll tax violations, it may affect eligibility for relief. However, we help first-time offenders or businesses with minor infractions present a stronger case to the IRS.
We work with the IRS to set up an installment payment plan, demonstrating your commitment to resolving the payroll tax debt over time and remaining compliant moving forward.
Our payroll tax debt relief lawyers help you respond to IRS inquiries and submit the required financial documents promptly. Cooperation and transparency are key to improving your chances of securing payroll tax debt relief.
Free Consultation
One of our experienced payroll tax lawyers will assess your payroll tax debt situation and explain the available solutions.
Eligibility Evaluation
J. David Tax Law will analyze your financial records, payroll tax filings, and compliance history to determine eligibility for IRS relief programs.
Form Submission
Our back tax attorneys manage all IRS paperwork, including filing IRS Form 433-B (Collection Information Statement for Businesses) and handle IRS negotiations.
Tax Debt Freedom
After successfully negotiating with the IRS, we help you implement the agreed-upon solution, ensuring your payroll tax issues are fully resolved.
One of our experienced payroll tax lawyers will assess your payroll tax debt situation and explain the available solutions.
J. David Tax Law will analyze your financial records, payroll tax filings, and compliance history to determine eligibility for IRS relief programs.
Our back tax attorneys manage all IRS paperwork, including filing IRS Form 433-B (Collection Information Statement for Businesses) and handle IRS negotiations.
After successfully negotiating with the IRS, we help you implement the agreed-upon solution, ensuring your payroll tax issues are fully resolved.
Payroll tax debt can severely impact your business, leading to aggressive IRS actions such as penalties, interest accumulation, asset seizures, and even the potential closure of your company. Navigating IRS regulations and resolving payroll tax debt on your own can be overwhelming and time-consuming, often resulting in costly mistakes. That’s where J. David Tax Law stands out.
At J. David Tax Law, our attorneys have been providing payroll tax debt services for over 40 years, earning national recognition and multiple industry awards. We combine this proven track record with decisive action to protect your business and deliver clear, lasting solutions. Our payroll tax lawyers focus on three key areas:
We act fast to stop the most damaging IRS actions by:
We look beyond short term fixes to deliver lasting solutions, including:
We defend you from the most serious payroll tax consequences by:
Contact us about your payroll tax issues. Call (888) 789-5011 to schedule a consultation with an experienced payroll tax attorney. Meet with our legal team by phone, or at our offices serving clients nationwide, including Florida, Texas, California, & New York.
If your request for payroll tax debt relief is denied, it is important to act quickly and strategically. A denial does not mean the end, you may still qualify for alternative resolution options such as appealing the IRS decision or negotiating a new installment agreement etc.
Consider Alternative IRS Relief Programs
If one type of payroll tax debt relief is denied, you may still qualify for other programs such as the IRS Fresh Start Program or currently not collectible status. These options can help you repay your payroll tax debt over time or temporarily pause collections if your business is facing financial hardship. A skilled payroll tax attorney near you can guide you toward the program that best fits your situation.
Review and Correct IRS Documentation
Many denials happen because of incomplete or incorrect paperwork. Our payroll tax lawyers will thoroughly review and correct your IRS filings, ensuring that all forms, including IRS Form 941 for quarterly payroll taxes and IRS Form 940 for unemployment taxes, are accurate, up to date, and compliant with IRS requirements. Proper documentation is critical for any successful payroll tax resolution.
Consult a Payroll Tax Attorney Near You
Working with a payroll tax lawyer ensures you have a legal professional who understands both federal requirements and local business challenges. We will identify why your request for relief was denied, explore every available IRS program, and develop a strategy to protect your business from liens, levies, and other enforcement actions.
File an Appeal or Request IRS Reconsideration
A denial from the IRS does not have to be the end of the road. We help you file an appeal or request reconsideration, directly addressing the issues that caused the denial. Our team presents your case with supporting evidence, increasing your chances of approval for payroll tax debt relief.
The taxes employers are required to withhold from employees’ wages and pay to the government on their behalf are known as payroll taxes. They typically include federal income tax withholding, Social Security tax, and Medicare tax, as well as the employer’s own share of Social Security and Medicare contributions. Employers must also pay federal unemployment tax (FUTA) and may owe state payroll taxes. These taxes are reported on IRS Form 941 each quarter and Form 940 annually.
Late filing of IRS Form 941 can result in a penalty of 5% of the tax due, plus an additional 5% for each month the return is late, up to 25%. Late payroll tax deposits trigger penalties of 2% for 1–5 days late, 5% for 6–15 days late, 10% for 16 days late, and 15% if the payment is still unpaid after a final IRS notice (CP220 or CP504J). Working with an employment tax attorney can help you address these penalties and prevent further IRS action.
Yes, the IRS has the authority to seize business assets, including equipment, inventory, and even bank accounts, if payroll tax debt remains unpaid. Asset seizure usually occurs after repeated failure to resolve the debt or communicate with the IRS. To protect your assets and avoid escalation, contact a payroll tax attorney for immediate assistance.
If you cannot pay your payroll taxes in full, the IRS offers several resolution programs. These may include an installment agreement to pay over time, an offer in compromise to settle for less than the total owed, or currently not collectible status if your business is experiencing financial hardship. In some cases, penalty abatement may also be available.
The IRS generally has 10 years from the date of assessment to collect unpaid payroll taxes. This is known as the Collection Statute Expiration Date (CSED). However, certain actions — such as filing bankruptcy, requesting an installment agreement, or submitting an offer in compromise — can extend this timeline. Determining your exact CSED can be complex, and miscalculating it could leave your business exposed to aggressive IRS collection tactics. Our payroll tax lawyer can review your case, confirm the statute of limitations, and develop a strategy to minimize your risk.
A 4180 Interview is used by the IRS to decide if you should be personally liable for unpaid payroll taxes through the Trust Fund Recovery Penalty, which cannot be wiped out in Chapter 7 Bankruptcy. An experienced payroll tax debt relief lawyer can prepare you for the interview, limit damaging statements, and protect your legal rights. Having counsel before this meeting can significantly reduce your risk of personal liability.
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