There are two broad types of taxes; the trust fund tax and the non-trust fund tax. Essentially, whatever is not included in the trust fund tax is automatically a non-trust fund tax.
Before we discuss the non-trust fund taxes, let’s first identify the trust fund taxes.
The employee tax is the significant trust fund tax. It’s called trust fund because a sum of money is held on behalf of employees to be remitted to the government.
The government directs employers to deduct the payroll trust fund from their employee’s salaries and withhold it for onward payment to the IRS.
The payroll tax and employees’ share of FICA that is being withheld by the employer is deducted from the employees’ wages and paid to the government. These are the taxes termed as “trust fund taxes.”
The non-trust fund, on the other hand, comprises of the taxes personally contributed by the employer. It’s the share of the Medicare, Social Security, and federal unemployment tax (FUTA).
While some taxpayers choose to defend themselves without legal representation, many engage the services of professional and experienced individuals such as IRS Tax attorneys, Certified Public Advocate and Certified Tax Resolution Specialists.
Getting a professional representation can help increase your chances of winning a tax settlement. It also minimizes the personal contact made with the IRS agents.
Most people find it quite intimidating owing the IRS. The IRS is authorized to seize your wages, assets, and place a hold on your property in a bid to collect their debt.
However, you can promptly prevent such action by communicating with the IRS about your case.
The IRS is always eager to communicate with those willing to resolve issues amicably. The IRS will also offer you the various options for resolving the debt.
Some of the option available includes:
This option allows for an installment payment to be made by setting up a monthly payment plan.
For this option, you are given a long-term payment plan which allows your tax debt to be paid at a reduced amount over time.
This option allows you to settle tax debt at a much-reduced rate to what you owe. However, you will be asked to make a lump sum payment or pay within a short period.
When you can’t pay your tax debt owed, it will be termed as “not currently collectible.” Typically, the IRS will seek evidence to prove this before it accepts such submission as “currently not collectible.”
If you are unfortunate to have inherited your spouse’s tax debt, the innocent spouse relief offers you an escape route. Once you can prove your innocence in the tax debt, the IRS will clear you from tax liability.
When tax is owed, the IRS most likely will issue a bank levy to seize your money in the bank (both cash and checking account) to collect back taxes. When such happens, the bank will keep deducting any amount in your account till the tax debt is fully paid except they are notified otherwise by the IRS. You will need to get a release of the levy from the IRS as part of the settlement process.
If you or someone you know thinks that he/she is eligible for a claim of Trust Fund Recovery Penalty or any other Tax Liability issue now would be a great time to come in and let us help you resolve the issue. I can be contacted at (212) 320-8191 or by email at email@example.com.
Urgent Tax Services
6009 16th Ave,
Brooklyn, NY 11204
Ph. (212) 320-8191
Fax (646) 626-6447