Why payroll debts are different
The withheld portion of payroll taxes is legally your employees' money held in trust — which is why the IRS treats unpaid 941s more severely than income tax, and why these cases escalate to revenue officers faster. California's EDD pursues state payroll debts with equal energy.
The Trust Fund Recovery Penalty can reach YOU
When a business doesn't pay, the IRS can assess the trust-fund portion personally against 'responsible persons' — owners, officers, sometimes bookkeepers with check-signing authority. That turns a business problem into a personal one. Who counts as responsible is very much a facts-and-representation question.
Keeping the business alive is usually the goal
Revenue officers primarily want current compliance (deposits happening now) plus a credible plan for the arrears. Getting current, staying current, and negotiating the back balance in that order is how businesses survive this — we've walked Central Valley employers through it.
What we do
Immediate triage: what's filed, what's owed, who's exposed personally, and what the revenue officer needs to see. Then we represent you with the IRS and EDD, set the compliance rhythm, and negotiate the resolution. Bring every notice to the first meeting. Hablamos español.
Common questions
A revenue officer left a card at my business. Now what?
Don't ignore it, and consider not going in alone: you can authorize a representative to make that first contact. What happens in the first conversation shapes the whole case.
Can the IRS shut my business down over payroll taxes?
In persistent cases the IRS can take enforcement action against business assets. It's rare when a business engages, gets current, and works a plan — which is exactly the path we set up.
I'm just the bookkeeper — can I really be personally liable?
Potentially, if you had authority over which bills got paid and paid others ahead of payroll taxes. If you've received a Trust Fund interview request (Form 4180), get representation before the interview, not after.
This page is general information, not tax advice for your specific situation — that’s what the free review is for. We never promise specific outcomes; options depend on your facts.