A few weeks ago, my book “Tax Debt Rule #1: There’s ALWAYS a Solution” was released. I know that the tax world in general is dry, technical, hard to follow, and, to put it bluntly, very boring. That was a huge obstacle I wanted to overcome with this book! Take a glance at this excerpt from Chapter 4, “Payroll Tax Debts and Pitfalls to Be Aware Of” and let me know if you think I hit the mark:

There are two reasons the IRS and states jump all over payroll tax debts:

• The trust factor: your employees are getting paid less than their gross income with the belief that you are paying the withheld monies to the government on their behalf.
• The annual filing factor: when your employees get their W-2 from you at the end of the year, they file their income tax returns based on the information reported on that document. For most hard-working W-2 employees, when they fill out their 1040 outlining their spouse and dependent children and all the deductions they are allowed to claim, they are usually owed a refund. The IRS and states will never refuse to issue a refund to a W-2 employee simply because the employer failed to submit the withheld payroll taxes. As such, the IRS and states lose out on positive cash flow whenever an employer does not pay over the withheld taxes.

Remember that the IRS and state collection departments are only as good as the databases they get their information from, so you won’t hear from them immediately. This is why a business with cash flow issues typically has a runaway payroll tax debt.

Businesses always have a slew of bills that need to be tended to consistently: inventory, supplies, utilities, fuel, etc. When things get tight, those items have to be paid, or the business’ ability to function is paralyzed. Though business owners do everything they can to prevent it, not paying a payroll tax can make perfect sense when push comes to shove. The power isn’t going to be turned off if the payroll tax payment isn’t addressed, but it will be if the electric bill isn’t paid. The next customer’s roof won’t be impacted if the payroll tax payment isn’t addressed, but it will be if the shingle supplier isn’t paid. It’s very easy to see how a payroll tax issue begins. The thought is typically, “I may not be able to pay it now, but I’ve got a big job coming up next month and can use those funds to catch up.”

Unfortunately, the catch-up never happens.

And once a business owner realizes that the IRS hasn’t reached out for several weeks, and even months, about unpaid payroll taxes owed, it becomes an easy avenue to “rob Peter to pay Paul.”

In “Tax Debt Rule #1: There’s ALWAYS a Solution,” I walk the reader through how tax debts come about, the notices that will be sent, the most common questions I receive from new clients, what can be DIY’d and what shouldn’t, and the top ten resolution options available to address past-due tax debt. This book is written for both tax professionals who are curious about tax debt resolution and taxpayers who may have a tax bill but don’t know what can be done to address it.

Pick up your copy today here ( https://a.co/d/2eBg6Kf), and after you read it, send me an email with your feedback or questions you may have: morgan.q.anderson@goldenliontaxsolutions.com. I’d love to hear from you!

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Trust. Protection. Wisdom.

Your future and your family deserve the right protection. Golden Lion Tax Solutions will be your advisor and confidant throughout the entire journey. We guarantee to offer you or your business best-case solutions for your tax debt. We are by your side every step of the way. Start now and get your life back.

For help with your tax debts, email contactus@goldenliontaxsolutions.com or call 833-LION-TAX (833-546-6829)

Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate solution to fit your situation.