Neglecting to file and pay payroll taxes is a surefire way to incur serious penalties and debt, and employers may run the risk of federal charges, not to mention the loss of their business. The penalties on late payroll tax filing or payment can increase exponentially in a very short time, and the I.R.S. are especially aggressive in their efforts to collect past due payroll taxes, since they assign higher priority to them than individual income taxes. Payroll tax problems in Illinois affect more than just the employer; it can mean the breakdown of your entire income, and the livelihood of every other employee in your business.
Payroll taxes are considered a “Trust Tax” by the I.R.S., meaning that the responsibility falls to the employer to collect federal withholding taxes and the employee amount of Federal Insurance Contributions Tax (FICA) to be passed on to the I.R.S. Failure to pay these taxes is considered “theft” by the I.R.S., and so the action they take to collect is much swifter and more hostile.
Negotiating for settlements or payment plans on a unpaid payroll taxes is much more difficult because the I.R.S. has no investment in the survival of your business. Offer in Compromise settlements are also usually ruled out because the I.R.S. will go on the assumption that the business itself is worth more than the total amount of back taxes, which they will use as grounds for rejection. Without many options, payroll tax problems in Illinois will simply increase without professional help.
Negotiating unpaid employee and payroll taxes is nearly impossible to do without professional help. To do so means putting your business and even your freedom at risk. If not handled by someone trained in tax law, employers who have not paid employee taxes may lose all of their assets and do jail time. Enlist the help of a competent tax professional to resolve your tax problems in Illinois and save your business.