Payroll Taxes Forms 940 and 941
Negotiating payroll taxes trust funds in an offer in compromise (OIC) is the hardest part in getting the offer accepted by the IRS.
This is not the time to do it yourself or hire a firm using a rookie to work out the details of this part of your offer.
Not using the right timing or tactics will cost you more money. This a job for seasoned professionals only.
Even if you do have an agreement the problems of collections do not end until the agreement gets to the offer professional.
Let us handle your payroll taxes trust funds problems.
Settling For Less Than The Full Amount Owed the IRS
Payroll Taxes Trust Funds
Payroll taxes forms 940 and 941 are forms employers use to file payroll taxes. Form 940 is to report an employer’s annual payroll taxes. Form 941 is used to report an employer’s quarterly payroll taxes.
IRS offer in compromise should be established on a per entity basis. An individual, corporation (form 1120, 1120S), partnership (form 1065), or trust fund (form 1041) are all legal entities. As such they may owe taxes of various characters.
The forms the IRS requires to be filed are form 941 for the employer’s quarterly taxes.
Payroll Taxes Owed By An Individual Or Partnership
The IRS does not distinguish trust fund versus non-trust fund in this offer situation. A sole proprietor who owes payroll will include the withholding tax, Social Security, Medicare, the matching portion, and all interest and penalties in the offer.
The individual will include any separate trust fund liability from a corporation, trust etc. assessed to them.
The individual will include any separate 1040 tax liability. Jointly owed 1040 taxes will be on a separate 656 joint offer application.
Payroll Taxes Trust Funds Owed By A Trust Or Corporation
The IRS will add this to any other tax, interest, or penalties owed by the entity as part of an offer for that entity.
If you have a corporation, form 1120 or 1120S, or a trust that owes payroll taxes, I may be able to save you about one half, without filing an offer in compromise.
If you are considering hiring us, call Joe Mastriano, CPA 713-774-4467.
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