Business Tax IssuesCRITICAL URGENCY

Falling Behind on Payroll Taxes? Resolve 941 Debt Now

Unpaid 941 payroll taxes trigger the Trust Fund Recovery Penalty—personal liability for business owners.

Critical Deadline

Ongoing—penalty assessments continue until resolved

Note: Strategy Sessions require a $250 analysis fee, applied 100% toward your final service.

Understanding 941 Payroll Tax

Form 941 payroll tax debt occurs when a business fails to remit employee withholding (income tax, Social Security, Medicare) to the IRS. This is considered 'trust fund' money—it belongs to employees and the government, not the business. The IRS takes this extremely seriously, often pursuing the Trust Fund Recovery Penalty (TFRP) against individual owners, officers, and even employees who had authority over payroll. Unlike other business debts, payroll tax liability can follow you personally even if the business closes.

IRS Authority: IRC § 6672, IRC § 6656

What Happens If You Don't Act

✗Trust Fund Recovery Penalty assessed personally against owners

✗Personal liability survives business closure or bankruptcy

✗Officers, directors, and payroll managers can be held liable

✗Business bank accounts levied without warning

✗Business closure if payroll obligations continue unmet

✗Potential criminal investigation for willful non-payment

How The Tax Pro Advisor Resolves This

Helping Austin and Leander business owners resolve 941 payroll tax issues with proven strategies and direct IRS representation.

1Negotiate installment agreement with the IRS

2Challenge Trust Fund Recovery Penalty assessments

3Identify responsible persons to minimize liability

4Establish current compliance to prevent future issues

5Submit Offer in Compromise when appropriate

6Create cash flow plan to stay current going forward

IRS Forms & Documents We Prepare

Form 433-B (Collection Information Statement)Form 4180 (TFRP Interview)Form 12153 (CDP Hearing Request)Form 656 (Offer in Compromise)Form 9465 (Installment Agreement)

Frequently Asked Questions

What is Form 941 payroll tax debt?

Form 941 payroll tax debt is unpaid employment taxes including employee income tax withholding, Social Security, and Medicare taxes that employers are required to deposit with the IRS.

How long do I have to respond to payroll tax issues?

You should act immediately. The IRS aggressively pursues payroll tax debt, and personal liability through the Trust Fund Recovery Penalty can be assessed while the investigation is ongoing.

Can I settle this for less than I owe?

The trust fund portion (employee withholding) cannot be reduced, but penalties and the employer portion may be eligible for settlement through an Offer in Compromise or penalty abatement.

Related IRS Issues

TFRP Penalty Bank Levy Offer in Compromise

Don't Wait Until It's Too Late

The longer you wait, the fewer options you have. Get a free, confidential consultation to understand your situation and next steps.