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Ask Mark Taylor Your Own Question
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1257
Experience:  Certified Public Accountant
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The company' s gross is $10,000 only.it is a boarding home.

Customer Question

the company' s gross is $10,000 only.it is a boarding home. After explaining to IRS that there are no employees , an llC, i requested for an abatement tooas someone gave me the form.But still someone authorized the money taken from my son s account
Submitted: 4 months ago.
Category: Tax
Expert:  Mark Taylor replied 4 months ago.

Hi, my name is Mark. I will be happy to help you with your question. Can you provide me a little more information. How many owners does the LLC have? What penalty was assessed?

Customer: replied 4 months ago.
sorry, had trouble finding where to reply. the LLc has 2 owners.
Expert:  Mark Taylor replied 4 months ago.

Was the LLC assessed a late file penalty?

Customer: replied 4 months ago.
IRS took $1300 from my son 's account. the total IrS wants is $19, 300 with penalties $9,132. Where they based these, i do not know because I submit the 941's.
Expert:  Mark Taylor replied 4 months ago.

Ok, so there are related to payroll taxes.

Expert:  Mark Taylor replied 4 months ago.

In your post you mentioned that you did not have any employees. Why were you filing 941 forms?

Customer: replied 4 months ago.
but there are no employees. This is just like a mom and pop establishment
Expert:  Mark Taylor replied 4 months ago.

Were you paying yourself wages? Was the LLC treated as a Partnership (Form 1065) or a S-Corporation (1120S)?

Customer: replied 4 months ago.
no wages, as a partnership
Expert:  Mark Taylor replied 4 months ago.

What type of tax is the IRS trying to collect? So I am having trouble understanding.

Customer: replied 4 months ago.
But i put Zero in it.
Expert:  Mark Taylor replied 4 months ago.

Did you file 941 forms? Were you audited by the IRS?

Customer: replied 4 months ago.
i filed 941 forms. Audited, No
Expert:  Mark Taylor replied 4 months ago.

You put zero on the 941's?

Customer: replied 4 months ago.
Expert:  Mark Taylor replied 4 months ago.

What notices did you receive from the IRS?

Customer: replied 4 months ago.
form 2751. The initial letter was from the "letter1153(DO)
Expert:  Mark Taylor replied 4 months ago.

Ok the penalty is a trust fund penalty. This would be generated if there were unpaid payroll taxes and you were considered to be a responsible person. Did you have any unpaid payroll taxes?

Customer: replied 4 months ago.
NO
Expert:  Mark Taylor replied 4 months ago.

Did you ever sign 941 reports for the LLC or another entity?

Expert:  Mark Taylor replied 4 months ago.

The trust fund penalty would be applied to an individual. It would be assessed to an individual that is considered a responsible person.

Customer: replied 4 months ago.
Expert:  Mark Taylor replied 4 months ago.

Besides the LLC that you are referring to?

Customer: replied 4 months ago.
No
Expert:  Mark Taylor replied 4 months ago.

Has the LLC ever had any employees?

Expert:  Mark Taylor replied 4 months ago.

Based on the letter that you received the IRS believes that you were a responsible party in a payroll tax liability. As a responsible party you would be assessed a penalty in the amount of the unpaid payroll taxes. I would suggest contacting a local CPA in your area. The CPA would be able to speak to the IRS on your behalf and find out where this penalty is originating from.