CASE STUDY 2

Small Business Payroll Tax Resolution

Context

A family-owned business fell behind on federal payroll taxes after prolonged cash-flow challenges. As the balance grew, the IRS assigned a Revenue Officer and began collection efforts, including the threat of bank levies and asset seizure.

Challenge

The business faced:

• A six-figure payroll tax liability
• Significant payroll tax penalties
• Active IRS collection
• Potential personal liability under the Trust Fund Recovery Penalty

Our Approach

Tax Matters:

• Assumed all communication with the IRS
• Stopped collection activity
• Completed a detailed financial analysis
• Negotiated a Partial Pay Installment Agreement
• Secured penalty relief through a reasonable cause request

Outcome

The IRS approved an affordable payment plan, allowing the business to continue operating while resolving its tax obligations. Collection activity ended, penalties were reduced, personal liability was avoided, and the company regained financial stability.