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Letter 1153: Responding to the Proposed Trust Funds Recovery Penalty

Receiving a notice from the Internal Revenue Service (IRS) concerning a potential penalty can be disconcerting, particularly when it relates to trust fund recovery. One such notice falling into this category is referred to as Letter 1153. This official communication informs you that the IRS’s diligent efforts to collect federal employment or excise taxes from your business have not resulted in the full payment of the outstanding liability. Consequently, the letter proposes the imposition of a penalty and provides detailed instructions on how to address this critical situation. In this blog, we aim to provide valuable insights on effectively managing and responding to the implications of Letter 1153, with the valuable support and guidance of Priority Tax Relief.

Implications of Letter 1153: Proposed Penalties for Unpaid Employment or Excise Taxes

Letter 1153 notifies you that the IRS is proposing to assess a penalty against your business due to the unpaid federal employment or excise taxes. The letter outlines the proposed penalty and asks you to indicate your agreement or disagreement with the penalty for each tax period listed. If you agree with the penalty, you are requested to sign Part 1 of the enclosed Form 2751 and return it to the sender. If you disagree, you have the right to submit a request for an appeal/protest.

Your Response to Letter 1153: Filing an Appeal/Protest

When faced with Letter 1153 from the Internal Revenue Service (IRS), which proposes a penalty for unpaid federal employment or excise taxes, it is crucial to understand your options for responding. IIf you disagree with the proposed penalty, you can submit a request for an appeal to the office or individual that sent you the letter. The letter provides information and lists IRS publications that explain how to file an appeal or protest. It is important to file your protest within 60 days from the date of the letter to appeal this decision with the Independent Office of Appeals.

Essential Considerations for Responding to Letter 1153

In this section, we will highlight important factors to keep in mind as you navigate the appeals process for Letter 1153. One crucial consideration is understanding the penalty assessment itself and assessing its validity. Taking the time to review and evaluate the proposed penalty, with the guidance of a tax professional if needed, can help you make informed decisions regarding your response. Additionally, consulting with Priority Tax Relief can provide you with expert guidance and support throughout the appeals process. Our team of experienced professionals can assist you in understanding your options, preparing your appeal, and representing your case to the Independent Office of Appeals. With our comprehensive services, you can navigate the appeals process with confidence and increase the likelihood of a favorable outcome.

Navigating Letter 1153 with Priority Tax Relief

Responding to Letter 1153 and addressing the proposed trust funds recovery penalty requires careful attention and timely action. By understanding the contents of the letter, evaluating the proposed penalty, and seeking the assistance of Priority Tax Relief, you can effectively navigate the appeals process. Whether you choose to agree with the penalty or file an appeal, ensure that your response is submitted within the given timeframe. Remember, Priority Tax Relief is here to provide expert guidance and support, helping you protect your rights and achieve a favorable resolution.

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FAQs

 The simple answer is no. A business and a person are completely separate, thus, any personal tax debts or liabilities should not affect your business.

Tax debt can be an exhausting and complicated thing to deal with on your own. Communicating with the IRS and professionally handling your tax liabilities are just two of the services companies like Priority Tax Relief can offer.

No. The IRS’s Innocent Spouse Relief protects you from paying these additional taxes. However, this does not relieve you from household employment taxes, business taxes, individual joint responsibility payments etc. Priority Tax Relief helps you learn more about innocent spouse relief.

The most popular option to date would be an Offer In Compromise (OIC). At Priority Tax Relief, we help tax relief help become more accessible to taxpayers in need and help them understand how they can qualify for these options.

IRS tax liens are legal claims on your property when you do not settle your tax debts. The IRS usually sends out a notice when no payment has been made after a liability assessment. Find out more about tax liens with Priority Tax Relief.

Yes. Not only can the IRS put a claim on all your current property, tax liens can also affect any property or intangible or tangible assets that you obtain in the future. At Priority Tax Relief, we help you understand federal tax liens and how to communicate with the IRS.

 

Tax levies are the actual seizure of your property and are different from legal claims or tax liens. Settle your taxes before the IRS sends out a notice. Priority Tax Relief helps you understand tax levies and how you can avoid them.

Yes. Not only can they seize physical property but they can also legally take hold of the money in your bank account and other wages. To avoid this from happening, contact Priority Tax Relief now.

Your debt will, unfortunately, continue to grow and you will possibly lose a great number of your assets. It is definitely a scenario we do not wish to see happen to anyone, that’s why Priority Tax Relief makes sure that our help becomes within reach.

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