Payroll Tax Deposits Missed. What the IRS Does Next.

Payroll tax deposits are not optional and they are not forgiving.

When a business misses a payroll tax deposit, the IRS does not send a gentle reminder. They send a penalty notice. The Failure to Deposit penalty starts at 2 percent of the unpaid amount for deposits one to five days late... and climbs to 15 percent for amounts still unpaid more than ten days after the first IRS notice.

Miss enough deposits and the IRS begins pursuing the business owner personally through the Trust Fund Recovery Penalty.

The Trust Fund Recovery Penalty Is Personal

Payroll taxes withheld from employee wages are held in trust for the government. When those funds are not deposited, the IRS treats it as the most serious form of employment tax non-compliance. The Trust Fund Recovery Penalty allows the IRS to assess 100 percent of the unpaid trust fund taxes against any responsible party personally... regardless of corporate structure.

Your LLC or corporation does not protect you from this one.

Recovery Requires Both Catch-Up and Defense

Compliance recovery from missed payroll deposits involves bringing deposits current, responding to penalty notices with a strategy, filing a First Time Abatement request where eligible, and building a defense against Trust Fund Recovery Penalty assessment if it has already been initiated.

At The Fixer Firm, we handle all of it. You do not navigate the IRS payroll enforcement process alone.

Every Missed Deposit Is a Clock That Is Already Running

If payroll deposits have been missed and notices have arrived, contact The Fixer Firm immediately. The window for the most favorable resolution closes quickly.

Schedule your Strategy Session today. www.thefixerfirm.co/startyourfix

This article is for informational purposes only and does not constitute legal or tax advice. The Fixer Firm™ | Alpharetta, Georgia | www.thefixerfirm.co