One of the first casualties for a business that has been in a tailspin is 941 payroll taxes. The IRS is naturally aggressive pursuing businesses that owe these taxes since they come directly out of an active pay stream.
Fundamental to 941 representation is whether the business can rebuild and get on the right track. If it seems possible, we can negotiate a reasonable payment agreement while exploring relief on penalties, or pursue an Offer in Compromise.
If the business doesn’t see a way to right the ship, dissolution is often a sensible choice. We can help increase the odds that the 941 taxes stay with the dissolved company. In other cases, however, the company owners require representation as the IRS pursues them for the “trust fund portion” of the taxes.
The type of entity involved (Corporation, LLC, Sole Proprietor) will be an important factor, as unpaid 941 taxes have varying effects on different entities.
Check out our 941 blog for more about these sorts of details.