Very few tax professionals and business owners realize, that just like a personal IRS tax debt, back payroll taxes can be negotiated down using the IRS Offer in Compromise program.
Anthony E. Parent, Esq. posted a good article which discuss the six advantages of using an Offer in Compromise to settle back payroll tax debt, which include:
1. A More favorable repayment schedule.
2. You can direct payments to the Trust Fund Penalty Taxes.
3. You can avoid paying the Trust Fund Penalty personally.
4. The Offer in Compromise is NOT Considered by your Revenue Officer.
5. No interest on repayment.
Have Payroll Tax Problems? Need and Offer in Compromise?