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Running a business is tough—but falling behind on payroll taxes can be even tougher.
When you don’t deposit your employees’ payroll taxes, the IRS doesn’t take it lightly. These taxes, known as trust fund taxes, are seen as government money—not yours. If unpaid, they can trigger serious consequences, including personal liability through the Trust Fund Recovery Penalty (TFRP).
But there’s good news: You still have options.
At Priority Tax Relief, we help business owners find tax relief solutions that allow them to stay in business while repaying the IRS—without fear of shutdowns, garnishments, or aggressive collections.
Why Payroll Tax Debt Is So Serious
Payroll taxes include money withheld from your employees’ paychecks for:
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Social Security
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Medicare
When these aren’t sent to the IRS, it’s considered a breach of trust. As a result, the IRS can:
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Charge heavy penalties
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Issue liens or levies
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Hold business owners personally liable with the TFRP
Even honest mistakes or cash flow issues can lead to big problems if not addressed fast.
How Priority Tax Relief Helps
Whether you’re just behind or already facing collection action, we can help you:
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Set up Installment Agreements to repay payroll tax debt gradually
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Apply for Penalty Abatement if you have reasonable cause
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Work through IRS compliance steps to prevent future issues
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Defend against the Trust Fund Recovery Penalty
We keep your business running while handling the IRS for you.
Get Back on Track Without Losing Your Business
Payroll tax debt doesn’t have to shut you down. Whether you’re a startup or a long-established company, we help you:
✅ Protect your assets
✅ Avoid personal liability
✅ Catch up on compliance
✅ Focus on your business
At Priority Tax Relief, we work quickly and discreetly to help you resolve your payroll tax issues—before the IRS takes action.
Frequently Asked Questions: Payroll Tax Relief
What are trust fund taxes?
Trust fund taxes are amounts withheld from employee wages—like income tax, Social Security, and Medicare—that must be sent to the IRS. These aren’t business funds; they belong to the government.
What is the Trust Fund Recovery Penalty (TFRP)?
The TFRP allows the IRS to personally go after business owners or responsible employees who willfully failed to deposit payroll taxes. It’s one of the most severe IRS penalties.
Can I settle payroll tax debt with an Offer in Compromise?
Sometimes. Offers in Compromise are generally available for income tax debt, but some businesses may qualify if they meet strict criteria.
Can I be held personally liable for payroll tax debt?
Yes. The IRS can assess the TFRP against owners, officers, or anyone responsible for payroll decisions—even if they’re no longer at the company.
How do Installment Agreements help with payroll tax debt?
They allow you to pay what you owe over time, often without shutting down your operations. We tailor the plan to your business cash flow.
Can penalties and interest be removed?
Yes. If you had a valid reason—like financial hardship or natural disaster—you may qualify for Penalty Abatement.
