When businesses with Payroll Tax Debt come into our Richardson, TX tax office, one of my major priorities is avoiding the Trust Fund Recovery (TFRP) from being assessed against my clients. The TFRP is an assessment that the IRS makes against what it considers to be Responsible Persons and creates a personal liability against that individual. We covered the TFRP previously.
On option to avoid the TFRP and settle the IRS Debt is the In-Business Trust Fund Express Installment Agreement (IBTFIA). For businesses which qualify, the IBTFIA can be an excellent way to Settle their IRS Debt.
Some of the advantages include:
- IRS Debt is assessed only against the business, no TFRP Assessment.
- Full Financial Information is NOT required.
- A Streamlined process that avoids the 4180 Interview.
Not all businesses qualify. Some of the qualifications and requirements include:
- The business is in operations.
- Total unpaid balance of assessments is $25,000 or less or the taxpayer can pay down to $25,000 to qualify.
- The liabilities are from the current or prior calendar year periods.
- The taxpayer must be and remain in tax compliance.
- Taxes are fully paid in 24 months, or before the CSED (IRS Collection Statute of Limitations) expires, whichever is earlier.
The IBTFIA may be an effective solution for Payroll Tax Debt relief for businesses that qualify. Stay tuned as we will continue to cover options for those with payroll tax debt in coming weeks!
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