CASE STUDY 2

Small Business Payroll Tax Resolution

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

The business was facing:

• A six-figure payroll tax liability
• Significant failure-to-deposit penalties
• Active collection by an IRS Revenue Officer
• Potential personal liability through the Trust Fund Recovery Penalty

Tax Matters immediately assumed representation and developed a comprehensive resolution strategy:

• Took over all communication with the IRS Revenue Officer
• Stopped enforced collection actions
• Completed a detailed financial analysis
• Negotiated a Partial Pay Installment Agreement based on the business's ability to pay
• Secured penalty relief through a reasonable cause request

The IRS accepted an affordable monthly payment plan that allowed the business to continue operating while resolving its tax obligations. Collection activity ceased, substantial penalties were reduced, personal assessment under the Trust Fund Recovery Penalty was avoided, and the company regained financial stability with a clear path forward.