CASE STUDY 2

Small Business Payroll Tax Resolution

Context

After prolonged cash-flow challenges, a family-owned business fell behind on federal payroll tax obligations. The balance grew into six figures, penalties accumulated, and the IRS assigned a Revenue Officer to pursue collection.

Challenge

The business faced significant payroll tax debt, mounting penalties, active IRS collection, and the possibility of bank levies or asset seizure. The owners also faced potential personal liability through the Trust Fund Recovery Penalty.

Our Approach

Tax Matters assumed communication with the IRS and worked to stabilize the situation. We addressed collection activity, completed a detailed financial analysis, negotiated a Partial Pay Installment Agreement, and requested penalty relief based on reasonable cause.

Outcome

The IRS approved an affordable payment arrangement that allowed the company to remain open and continue meeting its obligations. Collection pressure ended, penalties were reduced, personal liability was avoided, and the business regained financial stability.

The business stayed open. The pressure stopped. A path forward was established.