Payroll tax problems escalate fast. Unremitted 941 taxes can become personal liability through the Trust Fund Recovery Penalty, following you even through bankruptcy. Our team defends New Mexico business owners and responsible parties before the IRS assesses — all handled by phone.
Businesses that withhold income taxes and FICA taxes from employee paychecks must remit those funds to the IRS on a strict schedule. When a business falls behind on Form 941 (quarterly payroll tax) deposits, the IRS treats unremitted employee withholding as trust fund money held for the government. Falling behind triggers aggressive IRS collection action that moves faster than most business owners expect. The IRS employment tax resources explain the basic framework.
The Trust Fund Recovery Penalty is the IRS mechanism for assessing personal liability against individuals responsible for a business's payroll tax deposits who willfully failed to remit them. Once assessed, the TFRP becomes the personal debt of the responsible party, survives bankruptcy, and is collected through the same levy and lien tools used for individual income tax debt. The IRS uses Form 4180 interviews to identify responsible persons. If you have been asked to participate in a Form 4180 interview, call us before you attend. The National Association of Enrolled Agents provides additional payroll tax guidance.
IRS Letter 1153 proposes assessment of the Trust Fund Recovery Penalty against a specific individual. You have 60 days from the letter date to protest the assessment. Missing that protest window forfeits significant appeal rights and results in immediate assessment. The protest must address both the responsible-person determination and the willfulness finding. Call us immediately when you receive this letter.
For operating businesses, a Revenue Officer is typically assigned and requires current-quarter compliance as a condition of any resolution. We negotiate installment agreements for the existing 941 balance while helping the business establish current compliance. For closed businesses, we explore TFRP abatement, installment agreements, or OIC for responsible persons. All of this work is handled by phone and secure portal — no in-person meetings needed.
Ready to resolve this? As the tax attorney team Albuquerque and New Mexico trust, we offer a free consultation with a resolution specialist — available by phone Monday through Friday. Request a callback or call (505) 420-3320.
Our team resolves the full range of IRS enforcement actions: from wage garnishments and bank levies to federal tax liens, Offers in Compromise, and audit representation. Business owners dealing with payroll tax issues or a Trust Fund Recovery Penalty notice will find dedicated support as well.
We serve all communities in the greater metro: Rio Rancho, Santa Fe, Los Lunas, Bernalillo, Corrales, Belen, Edgewood, and Española, in addition to clients statewide for federal matters.
15 minutes with our resolution team. A concrete plan, yours to keep. No obligation, no pressure.
