Everyone knows it is best to pay your payroll taxes on time to avoid penalties and interest, however if you find yourself behind paying as soon as possible can assist you in avoiding unwanted additional fees. The goal should be to contact the IRS, or a tax professional as quickly as possible to discuss your options. Doing nothing is the most common and biggest mistake you can make.
Small businesses who qualify may be able to make monthly payments via installment agreement. Though interest and penalties may continue to accrue, an installment agreement may be your best option. In addition, if you’re small business is behind on payroll taxes, your company may qualify for an In-Business Trust Fund Express Installment Agreement. These agreements allow you to make monthly payments while avoiding the hassle of providing volumes of financial information. Also, since these agreements involve taxes withheld from your employee’s paychecks the IRS may implement additional procedures to ensure the ability to make Trust Fund Recovery Penalty assessments (TFRP). These assessments can be made against individuals within your business who carry the responsibility of paying payroll taxes, and have demonstrated an unwillingness