The Heavy Burden of Payroll Taxes
Small and mid-sized businesses in Omaha and Des Moines often struggle to keep up with payroll taxes. Unlike income tax, payroll tax money is collected from employees and held in trust for the government. When businesses fall behind, the IRS takes it very seriously.
What Are Payroll Taxes?
Employers must withhold income tax, Social Security, and Medicare from employees’ paychecks. These funds are then sent to the IRS. Failing to deposit them on time creates a major liability.
The Trust Fund Recovery Penalty (TFRP)
If payroll taxes are not paid, the IRS can impose the Trust Fund Recovery Penalty. This penalty makes business owners, officers, and even certain employees personally liable for the unpaid taxes. That means the IRS can come after your personal bank accounts, wages, and property.
Why Businesses Fall Behind
- Seasonal fluctuations in cash flow.
- Unexpected expenses like equipment breakdowns.
- Using payroll tax money to cover operating costs, hoping to “catch up later.”
How the IRS Collects
The IRS can:
- File liens against the business.
- Levy business bank accounts.
- Seize business property.
- Pursue personal assets of responsible parties.
Local Impact in Omaha and Des Moines
For businesses in Nebraska and Iowa, especially family-owned operations, payroll tax problems can be devastating. A levy on business accounts can halt operations overnight, while a lien makes it nearly impossible to secure loans.
Solutions for Payroll Tax Problems
- Installment Agreements to repay over time.
- Offer in Compromise to settle for less.
- Penalty Abatement for first-time issues or reasonable cause.
- Negotiation of TFRP assessments to protect individuals unfairly targeted.
Take Action Before It’s Too Late
Waiting only increases penalties and makes it harder to save your business.
BPB Tax Resolutions, led by Ben Butterfield, helps business owners in Omaha and Des Moines resolve payroll tax debt and fight Trust Fund Recovery Penalties. Call today for a confidential consultation.
