Thousands of businesses across this country find themselves behind with their taxes. In most cases they are not behind because of some deliberate attempt to defraud the government. They just don't have the money due to some unforeseen circumstance. Businesses that owe employment taxes or 941s typically have the money to pay their employees their net wages but don't have the ability to remit the withholding and social security to the IRS.
The business owners will prioritize paying the rent and utilities over paying their employment taxes as their is an immediate effect if these bills are not paid on time. If you don't pay your electric bill, the power company will shut off your power. If you don't pay your rent, you'll get evicted. With the IRS it can take 6-12 months or even longer to catch up with a delinquent taxpayer. But make no mistake, they will catch up with you. And in that time a business could have racked up 4 quarters worth of 941 tax debt plus penalties and interest. Once the IRS has assigned a Revenue Officer, you can expect that the aggression level will be severe. Business owners fall into complacency because they get scary notices in the mail and then nothing happens... until something does. Collection letters from the IRS should be taken seriously. A business owner may see a CP504 - Notice of Intent to Levy or Letter 1058 - Final Notice of Intent to Levy. These letters precede IRS enforcement action like bank levies, accounts receivable levies and seizure of assets.
So what can you do if you have fallen behind? Get professional representation. Hire someone that knows about the IRS Collection laws and procedures. Someone that can protect your rights as a taxpayer. Phoenix Financial Group is a tax resolution firm that specializes in resolving back 941 tax issues. All of our cases are assigned to a licensed Enrolled Agent or tax attorney.
