IRS 941 Payroll Taxes and State Tax Liabilities
941 payroll taxes are considered the Holy Grail of the IRS. It includes the trust fund deducted from employee’s paycheck, so it is their money you are using, and this becomes an obligation that the IRS will not negotiate downwards at all. Period.
However, based on our re-organization strategies, and applying IRS standards, we can eliminate the unpaid interest, the corporate investment and the penalties leaving just the trust fund to be repaid. Simple arithmetic will demonstrate the value of this transition, as it reduces the outstanding 941 tax debt obligation by approx 50%, and allows for a long-term gentle payback by the designated responsible party.
While not eliminating it altogether, a 50% reduction is sizable and meaningful. This is all implemented as part of our workout strategies.