Payroll Taxes Problems

Payroll tax liabilities are just one of many tax resolution matters a business owner can be faced with.  If your business has employees, then you are responsible to remit payroll taxes on them. The intervals which your business should remit federal tax deposits (FTDs) depend on the size of your payroll. If you fail to pay your payroll taxes on time, then the IRS will impose interest and penalties on your business.
 
There are times when employers run into payroll tax problems after closing down their business and forgetting to close out the payroll filing requirements with the IRS.  To remedy the situation and close out payroll tax problems, it may be a simple tax filing of Forms 941 and 940 - as Final.  Doing so would indicate to the IRS that you no longer have payroll associated with your business after a certain period.
 
At some point payroll tax problems become Trust Fund Recovery Penalties, where the liability becomes assigned to the business owner or the responsible party directly, and becomes associated with their Social Security number and instead of the business Tax ID number.
 
If you owe for payroll taxes, you can also set up an Installment Agreement with the IRS to get rid of the payroll tax problems.
 
Please keep in mind that payroll taxes are not absolved via a bankruptcy filing, therefore it is best to speak to a tax attorney or tax professional who handles payroll tax matters before taking the IRS up on your own.  It is common for business owners to run into payroll tax problems, and many times the answer is to resolve the situation via a proper tax filing.