Payroll Tax Train-Wreck: Resolving Your Client’s Payroll Tax Nightmare

Author: Eric L Green

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

How to Help Your Small Business Clients Dig Out of the Payroll Tax Hole
The number one reason why small businesses end up in IRS Collection is due to payroll tax liabilities. Best described as the “easiest loan to take and the hardest to pay back,” payroll taxes represent nearly 75% of all revenues into the United States Treasury, and therefore an issue of utmost importance to the IRS. Hence the IRS has become much more aggressive in its plan to close this collection gap, including increased criminal enforcement for unpaid payroll taxes. The impact of the IRS's increased enforcement activities is to send more taxpayers scrambling for professional help in resolving their IRS problems. Payroll tax problems can send a business spiraling into bankruptcy and create personal liabilities for business owners and responsible parties.

The key success factor in assisting businesses and business owners with their payroll tax issues is understanding the rules of how the IRS Collection Division works, how IRC Section 6672 functions, and knowing where the opportunities are to resolve the matter. This practical two-hour CPE course led by attorney Eric L. Green will also review the IRS’s use of the Department of Justice to force businesses to deposit or close, as well as the latest criminal tax enforcement cases for unpaid payroll taxes.

Publication Date: August 2018

Designed For
All CPAs, EAs, and tax professionals who work with clients on business and personal tax issues.

Topics Covered

  • The "Tax Gap"
  • Assessment and Collection procedures against the business
  • The IRC Section 6672 Trust Fund Recovery Penalty
  • Third-Party Liability under IRC Section 3505
  • The procedure for IRS assessment of and collection against responsible individuals
  • Strategies for minimizing personal liability
  • Options for resolving outstanding payroll tax liabilities
  • Criminal Tax Aspects of Unpaid Payroll Taxes

Learning Objectives

  • Describe and outline the steps to resolving payroll liabilities
  • Identify the trust tax concepts of personal liability for responsible parties
  • Recognize and apply a strategy for getting a payroll tax client current and compliant
  • Identify the penalty for failure to deposit if the deposit is not made within 10 days after the first delinquency notice
  • Differentiate statements with respect to payroll taxes
  • Describe trust funds
  • Recognize types of responsibility alone is insufficient to establish responsible person status
  • Differentiate court cases and how they apply to clients
  • Describe employment tax prosecutions
  • Identify how to determine who is responsible
  • Differentiate IRC Sections


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of payroll taxes and IRS procedures

Advance Preparation

Registration Options
Regular Fee $59.00

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