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 Jax Tax Your Own Question

Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1376
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
59761513
Type Your Tax Question Here...
Jax Tax is online now
A new question is answered every 9 seconds

I owe 30k in employee 941 taxes on my business, I have made

Customer Question

I owe 30k in employee 941 taxes on my business, I have made some payments on time but just really could not afford them. recently slashed payroll and am trying to catch up and am current for this quarter. How should I proceed to work with the irs?
Submitted: 2 years ago.
Category: Tax
Expert:  Richard replied 2 years ago.

Good afternoon. You can deal with the IRS in one of two ways: i) if you can pay it within 60 months, the IRS will work out an installment payment arrangement with you; or ii) if not, you would want to file an application for an Offer in Compromise where the IRS will agree to forgive all or a portion of it that can't reasonably be paid within the 60 month period. You can find a step by step process for filing the Offer in Compromise application, as well as the full details of the program, in the IRS Offer in Compromise booklet which you can find at the following website: www.irs.gov/pub/irs-pdf/f656b.pdf

 

 

I hope this has given you information that has been helpful to you. I wish you the best of luck!

 

If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping others or taking a break.

 

If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

 

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.

 

Please be aware that the information provided here is not legal advice. Rather it is simply general information. All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

 

 

Expert:  Jax Tax replied 2 years ago.
Since this is 941 payroll debt, a 60 month agreement is not available. You have two options.
1. Pay the debt below $25k which includes penalties and interest and enter.into a 24 month payment plan. This can be done by calling(NNN) NNN-NNNN
2. Call the same number and they will have the file assinged out to a revenue officer. You will need to provide the RO with form 433b to establish a payment plan based on your ability to pay.
Both require you to be current of payroll deposits and not incur debt going forward.
Expert:  Jax Tax replied 2 years ago.
If you do not pay it below $25k, the revenue officer will do what is called a Trust Interview. The owners and other responsible.parties will be personally assessed the portion ofnthe tax that was withheld from the employees' pay checks. They will then be required to complete form 433a to establish a personal payment plan, set up a 60 payment if total debt is under $25k, or pay the amount in full. This requires all personal tax returns 2005-2010 to be filed.
Expert:  Jax Tax replied 2 years ago.
Whether personal or business, the IRS will file tax liens if the debt is over $25k, and if nothing is done will resort to levy action. To summarize, you must establish you will not continue to owe. The best option is to ensure all returns are filed and the debt is under $25k setting up a 24 month payment plan by calling.If you are a sole prop not incorporated or having an LLC set up, the business and personal are merged. This means that your 1040s 2005-2010 and all business returns must be filed. The total debt between the two must be under $25k, and it must be paid in 24 months. All business returns must be filed. If it cannot be paid in 24 months, you only supply form 433a including the business income on page 5 and 6 of the A instead of a separate form 433b. If you cannot pay below $25k and have a Sub S tax election in place filling form 1120s, you need to ensure all owners that are working for the business are being paid a fair wage as a w2 employee. Of this is not done, you are in violation of federal law and when the 433b financial is done, no money will remain for the owners to pay any personal bills as distributions are not a valid business expense when you owe the IRS. Do not file an offer in compromise. You will be wasting your time. The IRS will not settle your business tax debt. They can, but you will not be successful at an in business Offer without professional help and even then it is not likely.
Expert:  Jax Tax replied 2 years ago.
Your only option is to pay it. The question is how. Either within 24 months with ease or you spend the next year negotiating with the IRS for more time while your business financial circumstances are under extreme scrutiny.
Expert:  Jax Tax replied 2 years ago.
Please.let me know if you need additional assistance.
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1376
Experience: JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
Jax Tax and 7 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.