Business Tax Relief Assessment

Each answer maps to a published rule. Issue type separates federal debts (payroll, business income, excise) from state debts (sales tax, state business or franchise tax). Balance is compared with the IRS's Simple Payment Plan limits for businesses — which are lower when trust fund taxes are involved. Operating status decides whether you're on the in-business or out-of-business route. Unfiled returns come first, because nearly every IRS and state option requires them. Collection stage shows urgency: a levy or an assigned revenue officer means short deadlines.

The results are grouped as worth exploring, may apply, and heads up warnings — for example, the Trust Fund Recovery Penalty when payroll taxes are unpaid.

Income tax withheld from employees and the employees' share of Social Security and Medicare are held in trust for the government. Under Internal Revenue Code section 6672, the IRS can assess the Trust Fund Recovery Penalty against any responsible person who willfully failed to pay them. Operating as an LLC or corporation, or closing the business, doesn't necessarily remove that exposure. Many states apply similar responsible-person rules to sales tax collected from customers. See Letter 1153 and our payroll tax guides.

We don't predict settlement amounts or say a state program will approve you. An Offer in Compromise depends on the business's (and, where liable, the owners') asset equity and future income. If you want a professional to look at the full picture, you can request an optional free review after your results. We may be compensated for that referral; it doesn't change your results. See how we make money.