Our Services
Bookkeeping
Accurate financial tracking and reporting to keep your business organized.
Tax Preparation
Professional tax filing services ensuring compliance and maximum savings.
Audit Representation
Expert support and representation in case of audits and IRS inquiries.
Fractional CFO
Financial leadership to help businesses improve strategy, optimize cash flow, and drive sustainable growth.
FAQ
How do I know if I qualify for an IRS tax relief program?
Qualification depends on your total tax debt, financial situation, filing history, and ability to pay. The IRS offers multiple programs — including installment agreements, Offer in Compromise, and Currently Not Collectible status — each with different eligibility criteria. A tax professional can assess your situation and identify the best fit.
What is a 941 tax liability?
Form 941 is the IRS's quarterly payroll tax return that employers file to report wages paid, federal income tax withheld, and both the employee and employer share of Social Security and Medicare taxes (FICA). A 941 liability arises when a business fails to deposit or pay these amounts on time — or at all.
What is Form 941 and why do I have to file it?
Form 941 is the quarterly payroll tax return all employers must file to report wages paid and taxes withheld from employees. It covers federal income tax withholding, Social Security, and Medicare. Failure to file triggers automatic penalties on top of any taxes owed.
How long does the tax relief process typically take?
It depends on the resolution type. A simple installment agreement can be set up in days. An Offer in Compromise typically takes 9–18 months for IRS review and decision. Penalty abatement requests can take weeks to months. Complex cases with unfiled returns can take longer depending on how quickly documents are gathered and submitted.
What should a business owner do first if they've fallen behind on 941 taxes?
Stop the bleeding — get current on all new payroll deposits immediately. Then get professional representation before engaging with the IRS or a Revenue Officer. Do not ignore notices. Pull transcripts to understand exactly what's owed per quarter. Assess who qualifies as a "responsible person" and prepare for TFRP risk. A clear resolution strategy — installment agreement, OIC, or hardship status — should be built on accurate financial data and current compliance.
What is the single most important first step when a business falls behind on 941 taxes?
Stop accumulating new payroll tax debt immediately. Make all current deposits on time going forward. The IRS will not negotiate any resolution — installment agreement, OIC, or otherwise — if the business is still adding to the balance. Getting current on new obligations is non-negotiable before any relief option becomes available.
Can the IRS garnish my wages?
Yes. The IRS can issue a wage garnishment (levy) to your employer, requiring them to withhold a portion of each paycheck until the debt is paid. Unlike private creditors, the IRS does not need a court order to do this.
What is the difference between the trust fund portion and the non-trust fund portion of 941 debt?
The trust fund portion is the employee share of Social Security, Medicare, and withheld income taxes — money collected from employees. The non-trust fund portion is the employer's matching share of FICA. Only the trust fund portion can be personally assessed via the TFRP. The non-trust fund portion is the business's liability only.
What is the Trust Fund Recovery Penalty?
The Trust Fund Recovery Penalty (TFRP) is a 100% penalty the IRS can assess personally against any individual deemed responsible for failing to pay over employee payroll taxes. It equals the full employee share of the unpaid taxes and can be pursued even after the business closes.
What triggers an IRS audit, and is it related to tax debt?
Audits are triggered by statistical anomalies, mismatched information (W-2s, 1099s), unusually large deductions, or random selection. An audit itself doesn't create tax debt, but the result of an audit can. Tax debt and audits are separate processes, though both can occur simultaneously.