Services: Collection - Business
IRS Collection of an Unpaid Tax Liability
CORPORATIONS typically file many different tax returns. The income tax return for a corporation is typically a Form 1120. If you have employees, you are also probably required to file quarterly Form 941 tax returns and annual Form 940 tax returns. . Further, if you sell anything at retail, you are also required to file sales tax returns with the Illinois Department of Revenue or other taxing authorities.
The burden the government places upon businesses is tremendous and often difficult to handle. This can result in confusion, unpaid taxes including unpaid payroll taxes, failure to file penalties, and significant amounts of IRS interest and penalties.
If a business is not as profitable as hoped, or if there is a sudden business downturn, executives may stop making the federal tax deposits under Form 941 and Form 940 on a regular basis. The hope is that the business will soon turn around and that they will be able to "catch up" on their unpaid tax. IRS interest and penalties further compound the unpaid tax issue.
Unfortunately, the IRS takes a dim view of businesses that fail to make their federal tax deposits in full and on time. The IRS takes the position that an employer is using the employees' money to operate its business and will take swift and strong action if the unpaid tax issue is not rectified immediately, often by seizing the business itself. Furthermore, the IRS or the Illinois Department of Revenue can come after the owners of a business and assess the Trust Fund Recovery Penalty against them personally, which can result in a tax seizure, lien or levy.
Call us if you have unfiled Form 1120, Form 940 or Form 941 tax returns or unpaid tax liabilities, or if you are facing tax seizure, liens or levies. Since 1991, Patrick T. Sheehan & Associates, Attorneys at Law, P.C. has effectively fought on behalf of its clients to secure their businesses from future IRS problems. Or, learn more about Collection – Individual.
1-877-4-IRS-LAW