Falling behind with 941 Employer Withholding Taxes can be scary. The IRS has lots of power to collect past due taxes particularly when it comes to 941 taxes.
The taxes associated with 941s are deemed to be "Trust Fund" Taxes. This means that a business is supposed to hold the taxes in Trust for the Federal Government. It also means that the IRS can pierce the corporate veil and hold the owners, officers, and check signers personally responsible for the taxes.
The "Trust Fund" portion of the 941 tax debt is made up of the employee's portion of Social Security and Medicare and the employee's withholding for Income Tax. The Trust Fund does not include penalties and interest nor the employer's contribution to Social Security and Medicare.
An investigation needs to be conducted before the IRS can hold someone personally responsible for the Trust Fund portion of the 941 taxes. The IRS will look at anyone who has the authority to sign checks. They will ask for canceled checks and a copy of the bank signature card. They will also due an interview with anyone that has the authority to sign checks and any owner or officer. This interview is a person's chance to exonerate themselves from responsibility.
There are options in this situation. The Tax Attorneys and Enrolled Agents at Phoenix Financial Group can assist you in dealing with your 941 tax problems including how to get a favorable result when dealing with the Trust Fund. Don't compound your problems by not getting professional help. Call (888) 572-2179 for a free consultation or send an email to info@pfgtax.com.
The longer you wait the more likely the IRS is to proceed with enforced collection action like wage garnishments, bank levies, liens and seizures. PFGTAX can help you prevent these types of actions and get back on your feet.
941 taxes need to be paid by going to www.eftps.com. You will need to schedule a payment a day in advance. If you would rather have a payroll service, our client's get a discount with ADP.
(888) 572-1279 is the number to call for professional tax representation. Check us out on at the BBB where we have an A+ Rating.
