Near the ending days of a failed business, I neglected to pay the last quarter employment taxes due to no receivable income. The return was $800.00. Ifigured I'd have the $ in a week or so. I went out of business without paying and the tax authorities attached a jeopardy finding on me, which they presumed I owed much more (equal to when i had a much, much larger payroll), so now. YEARS LATER, I want to buy real estate, and can't qualify for a loan due to the lien. How long will it take me to get this lien resolved? What would be the best way to approach the IRS? Even with the original amount due, and penalties and fines it still shouldn't be more than a few thousand dollars. I could easily pay that.
2007-02-20 02:55:32 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You'll need to pay off the outstanding debt with the IRS to get the lien cleared. That's the only way. It will still show up on your credit record but at least it will show as paid.
You are being held personally liable for the unpaid payroll tax; that is both legal and common practice.
You probably compounded the issue by failing to file the payroll tax return so the IRS generated a "constructive return" from the information that they had available. When they do that, they don't have your best interests in mind. If you file the missing tax return, it's possible to have the tax reduced to the correct amount and any penalties and interest adjusted accordingly.
Until you contact the IRS, you won't know where you sit. I'd recommend a consultaton with a CPA or tax attorney first and then pick up the phone.
2007-02-20 03:21:08 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The IRS gets really, REALLY upset with people who withhold taxes from their employees' paychecks, then don't remit it to the IRS. Do you have records showing your payroll for those times? That would help.
2007-02-20 14:14:29 · answer #2 · answered by Judy 7 · 0⤊ 0⤋