How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ed Johnson Your Own Question
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Type Your Tax Question Here...
Ed Johnson is online now
A new question is answered every 9 seconds

I owe IRS $15000 in Federal employment taxes, interest and

This answer was rated:

I owe IRS $15000 in Federal employment taxes, interest and penalties from 04 & 05. I have sketched the OIC worksheet and it shows can pay 100% over the next 4 yrs. Could a tax atty help reduce this in any way? I lost my business, my husband is on disability, and have 15 yr old son at home. I work for someone else now not making much.



Thank you for your question.


An offer in compromise is seldom affective for federal employment taxes. This is because these are in a category called "Public Trust Fund Taxes". This does not mean there was a formal trust; but that the taxes are withheld from employees and held "in trust" to be paid to the IRS and SSA quarterly.


There is very little lee way given to this category of tax debt.


As you might surmise, a tax attorney may be able to help you to obtain at least a installment agreement, and even to get the interest and penalties abated based on hardship.


Your only recouse will be based on hardship. AND the best chance of success is with the assistance of a tax attorney.


The IRS rarely abates the tax itself, when the tax is the public trust fund taxes. This i s because the tax, if federal employment taxes, is generallyl representative of taxes withheld lfrom employees, and so must be paid.


If these emplohyment taxes are for self employment, it may be a different story, but it will still require an attorney for the best chance of success.

Ed Johnson and 3 other Tax Specialists are ready to help you

Related Tax Questions