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M&M Financial can help you resolve your Trust Fund assessment. This is one of our specialties. Here’s some information on the Trust Fund and how M&M can benefit you.
The Trust Fund Recovery Penalty (TFRP) is a portion of an employment tax liability that can be assessed to the Responsible Individuals of a business. Click here for further explanation. The IRS uses the TFRP to enhance voluntary compliance and facilitate the collection of back payroll tax. The IRS is able to collect the same tax from the business and the individual at the same time.
How Does the IRS Determine Who Is Responsible?
The IRS uses an investigative process to determine which individuals to target. At M&M we know the questions that the IRS will ask and the documents they require to conduct the investigation. Our client’s are well prepared for it.
The TFRP may be asserted against any Responsible Individual(s) of an employer that has the duty to perform or the power to direct another person to collect, account for and pay the Trust Fund tax to the IRS. According to the Internal Revenue Manual, the following questions are considered when determining the Responsible Individual(s).
Did the individual: Continue reading
Recently M&M helped a client secure a formal Installment Agreement to his back tax debt and save approximately $15,000 in the process. A Houston Texas client came to M&M looking for help resolving his business tax debts. What he got was the information and guidance he needed to make good decisions for himself and his family.
Houston is a tough city to own and operate a small business. Not only do you have to maintain Federal and state tax compliance, you also need to adhere to the city’s many tax laws and permit rules. This can wear down even the most durable of small business owners. When our new client came to us for help, he had multiple businesses that were failing and wasn’t sure how to fix his problems, the biggest being his IRS tax debt.
After a thorough investigation of the case, we were able to break down the tax liabilities into the Trust Fund tax, Non Trust Fund tax, penalty and interest portions. We identified one alternative resolution and reduction option that really captured our client’s attention. As a well known auto mechanic in the area, our client had been offered a solid job by a respectable company making good money in the Houston area. After weighing the options presented to resolve his growing tax debt, our client made the best decision for himself and his family’s well being.
The alternative option presented by his M&M Tax Team was to shut down his businesses and go to work for someone else working decent hours for a decent wage. Shutting down his businesses and resolving the Trust Fund portion of the payroll tax debt personally ended up saving him about $15,000 in Non Trust Fund tax, penalties and interest. M&M helped him shut down his business in front of the IRS and secure a reasonable monthly payment plan to the remaining Trust Fund tax.
Although shutting the doors on a business is not the best option for most of our clients, it is for a few. It’s a really difficult decision to make. Dissolving a business can be difficult and heartbreaking. But for some, it’s without a doubt the best decision. At M&M we look at all the options before introducing alternative resolution strategies with our clients. Give us a call at 866-487-5624 to find out how we can help you resolve and reduce your back taxes.
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All of M&M’s clients owe the IRS and/or state a back tax debt. Many of them are also in the midst of trying to resolve other debts to many other creditors. One common debt we hear about is to credit cards.
Unlike the IRS, the credit card company must be awarded a judgment by a court of law before they can take money from bank accounts or garnish wages. The IRS does not need a judgment to do this. You can see why it is important to pay the IRS first because of their supreme collection abilities. Please also keep in mind that some credit card companies may be willing to negotiate a settlement of the total to avoid court and collection costs.
The IRS will not allow payments to credit cards and many other unsecured creditors as an allowable expense when calculating your disposable monthly income. Your disposable monthly income is a major component in determining the correct resolution to your tax debt. Since payments to unsecured creditors will not be used in determining your disposable monthly income, it may be difficult to pay your monthly credit card bills once your IRS resolution is in place.
Here are two simple tips for those of you dealing with credit card debt. Continue reading
M&M successfully abated all of the penalties assessed by the IRS to a Chicago Heights business payroll tax account. The total IRS tax debt when we started was approximately $71,000. The total penalty removed was $9,628.05. That’s more than 13% of their tax liability removed. Here’s how it happened.
Our Chicago Heights business client came to us with a formal Installment Agreement to pay their back tax debt already in place. This is important because a formal resolution to the tax debt tells the IRS that the problem that caused the accrual of the tax and penalty is fixed. The Installment Agreement shows the IRS that the delinquent taxpayer is now compliant with its current tax responsibilities, out of IRS Collections and paying back the taxes. This gives the reasons behind the accrual of the tax more credibility.
We had our new client complete our Abatement questionnaire so that we could get a good idea of the circumstances that caused the tax accrual. As we constructed the Abatement request using our clients answers on the questionnaire and the Internal Revenue Manual (IRM), new questions emerged. In this case, our business owner had suffered significant health issues that caused him to be away from his business and therefore accrue a payroll tax liability. With our client’s help, we were able to determine the exact timeline and wording to include in the Abatement Request.
After preparing the written Abatement Request with proper IRM references and substantiation documents, M&M submitted it to the Service. It was denied. This is something we’ve experienced many times and we were prepared for it. We don’t quit on the first “no”. So, we sent a timely request to IRS Appeals for the reconsideration of our Abatement request.
While waiting for our Appeals hearing, we got our ducks in a row and made sure our presentation of the facts was clear and concise. After review of M&M’s Appeal Request on our client’s behalf, the IRS Settlement Officer agreed with our reasoning and approved the abatement of all penalties assessed to our client’s account.
M&M offers an Abatement Request service for $500 and 10% of the penalty amount abated. This means there is little risk and maximum reward for our client’s. It also ensures that your M&M Tax Team will be fighting to get your penalties removed because our success is tied to your success. Call M&M today at 866-487-5624 to find out how we can help you resolve and reduce your back tax liability.
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Owing back income taxes, employment taxes, Trust Fund taxes and other taxes to the government can be scary. And, the process to resolve your back tax debt can be very intimidating. M&M will shed some light on your rights and the options you have available to fix your tax problem for good. Contact us today for a free, confidential consultation to find out which tax resolution option best fits your specific situation. You may qualify for an Offer in Compromise, a monthly Installment Agreement, Currently Not Collectible status, Penalty Abatement or others.
Another satisfied M&M Financial client.
“Palm Heights Baptist Church is so pleased with MM Financial and their professionalism. This company and its associates assigned to our account were so prompt in helping us get our back taxes taken care of. We highly recommend anyone or company that needs this kind of help, to use their services. Their motto is, ‘We Solve Tax Problems’ and YES they do.”
San Antonio, TX