Problem:
Dallas corporation was delinquent in filing payroll tax returns and making payroll tax deposits of $100,000

Action Plan:
We met with the client to discuss the situation and obtain the payroll records. We discovered the client had a misunderstanding in the payroll filing requirements as well as a nonqualified employee handling payroll. We immediately prepared and filed the delinquent quarterly reports even though the client could not pay all the tax due. We met with the IRS and successfully negotiated a payment arrangement with the IRS to pay all the past due taxes and interest. In addition, we abated $50,000 in penalties after providing details supporting our position of reasonable cause.

Results:

• Improved cash flow management
• Client deposits payroll taxes on a timely basis
• Client files timely quarterly tax returns
• Client saved $50,000 in tax penalties