Business Tax Debt — The IRS Takes This Seriously
Unlike personal income tax debt, business tax debt triggers aggressive enforcement actions quickly. Payroll taxes, in particular, carry personal liability risks that can't be escaped — even through bankruptcy or dissolving your business.
Payroll Taxes — The #1 Business IRS Risk
Unpaid payroll taxes are the most dangerous business tax debt. The IRS can assess the Trust Fund Recovery Penalty (TFRP) — holding owners, officers, and even bookkeepers personally liable for the trust fund portion (employee withholdings). This pierces the corporate veil and goes after personal assets.
Warning
TFRP = 100% personal liability for withheld employee taxes.
Sales & Excise Taxes
Sales tax collected from customers but not remitted to the state carries similar personal liability risks. Many state revenue agencies pursue trust fund recovery against owners for unremitted sales tax, and the IRS can pursue federal excise tax violations the same way.
Key Insight
States and the IRS share collection data more than ever. State sales tax issues can trigger federal enforcement.
Entity & Income Taxes
Corporate income tax, S-corp distributions, LLC self-employment tax — when business entities fail to pay, the IRS can file a federal tax lien, levy business bank accounts, and seize business assets, including accounts receivable.
Did You Know?
A federal tax lien attaches to all business property and can ruin credit scores and banking relationships.
The TFRP — Personal Liability
The IRS can assess the TFRP against any "responsible person" who willfully fails to collect, account for, or pay over employee payroll taxes. The IRS can take your house, car, bank accounts, and retirement savings — even if the business is an LLC or corporation. The TFRP is not dischargeable in bankruptcy.
Act Now
This is the IRS's highest priority collection item. Contact us immediately if you have unpaid payroll taxes.
Get Your Business Tax Debt Resolved
Don't wait for IRS agents at your door. Our tax resolution team negotiates directly with the IRS on your behalf — settling debts, stopping levies, and lifting liens.
Business Resolution Options We Secure
Express Installment Agreement
In-Business Trust Fund Express agreements cover up to $25K over 24 months — the fastest IRS payment plan for payroll tax debt.
Offer in Compromise
Settle your business tax debt for less than the full amount owed when you qualify through doubt as to collectibility or liability.
Currently Not Collectible
If your business can't pay anything toward the debt, we can get the IRS to mark it currently not collectible and pause enforcement.
Penalty Abatement
Remove or reduce failure-to-file, failure-to-pay, and late-payment penalties — especially effective for payroll tax penalties.
CDP Hearings
Collection Due Process hearings provide a formal channel to stop IRS enforced collection and negotiate alternatives.
Lien & Levy Relief
Secure lien withdrawals, subordination, and levy releases to restore your business's ability to borrow and operate normally.
Warning: TFRP Cannot Be Discharged in Bankruptcy
Filing bankruptcy won't protect business owners from the Trust Fund Recovery Penalty. The IRS prioritizes payroll tax collection above all other debts. The sooner you act, the more options you have — and the less time the IRS has to take aggressive enforcement actions against you and your business.
- Free business tax evaluation
- Stop levies & seizures fast
- Protect personal assets
- Since 1994, nationwide