Is Tax Relief available for businesses?

July, 16 2024 by Kaylie Jonutz

The short answer is yes, Tax Debt Relief is available for businesses.

Read on to learn more about tax debt issues that your business may be facing, such as Employment Tax Issues or Trust Fund Taxes and the Trust Fund Recover Penalty.

However, if you are looking for immediate assistance or want to speak to a qualified tax professional about resolving business tax debt, read to the end of this blog or reach out to TaxAudit’s Tax Debt Relief team for a no-obligation, personalized consultation.

Now, let’s discuss some of those tax issues you and your business may face.

Employment Tax Issues

Employment tax issues can be a common problem for businesses, especially if you failed to make adequate employment tax deposits or were subject to an employment tax audit. These audits typically look at the classification of your workers because this can significantly impact employment tax liabilities. For example, if the IRS reclassifies independent contractors to employees in an audit, this can result in additional employment taxes.

If you cannot make these total payments when they are due, the IRS will send you a notice requesting these funds.
 

Trust Fund Taxes and Trust Fund Recovery Penalty

It is also important for business owners to be aware of Trust Fund Taxes and Trust Fund Recovery penalties. The IRS created the Trust Fund Recovery Penalty program to promote the immediate payment of trust fund taxes.

The term “trust fund” is used because employers are required to hold their employees' money in trust until they make a federal tax deposit. Trust fund taxes include federal income, Social Security, and Medicare tax that is withheld from employees' wages. These taxes are paid in two deposit schedules: monthly and semi-weekly.

If you fail to pay your Trust Fund Taxes, your business may be subject to the Trust Fund Recovery Penalty. It is also important to note they can be assessed against the individual owners of the business as an individual penalty, regardless of your business entity type.

The best way to avoid the Trust Fund Recovery Penalty is to be diligent about collecting all employment taxes and paying the IRS by your due date. To learn more about these deposits and determine your payment schedule, click here.
 

Tax Debt Solutions

If your business owes back taxes and you can't pay your tax debt in full, you may be eligible for tax debt relief.

Here are some programs your business may be eligible for:

• Offer in Compromise
• Installment Agreements
• Currently not Collectible status
• Audit Reconsideration
• Trust Fund Recovery Penalty Relief

However, if you are feeling overwhelmed with business tax debt and don't know where to start, we are here to help! TaxAudit’s Tax Debt Relief team is standing by, ready to provide a no-obligation consultation with one of our world-class Tax Professionals. In this appointment, we will discuss your business's tax situation and help you understand the best option available to you. Contact us today to learn more and get started.