The Payroll Liability Assessment Process

At Christopher G Carmona CPA, APC, we understand that payroll tax payment and filing requirements can be quite a challenge. The rules can be complex, and penalties for non-compliance severe, but accurate and timely compliance is the key to avoiding payroll tax penalties!

As a leading Certified Public Accountant in Diamond Bar, Los Angeles County, I’ve compiled a list of important details about the IRS’s approach to collecting payroll taxes. Examine the list to ensure that you are effectively handling payroll tax liabilities.

When a company owes payroll taxes, the process the IRS will pursue is the following:

1. The payroll returns are filed.
2. The taxes are assessed.
3. Demand for payment is made on the company.
4. If the company can not make payment within a short time, the IRS Revenue Officer will attempt to determine who the responsible parties are.
5. Form 4180 Trust Fund interviews will be conducted.
6. The IRS will then make proposed assessments against all the parties it believes are responsible with Letter 1153.
7. Letter 1153 also includes a waiver form, Form 2751.
8. Taxpayers can either sign the 2751 and be deemed responsible or file a written protest denying responsibility within 60 days of receiving the Letter 1153. Those taxpayers held responsibly will either pay or have to pursue a collection alternative.

If you have any concerns about payroll taxes or you’re looking for a reliable accounting firm to help simplify the process, reach out to the tax expert at Christopher G Carmona CPA, APC. I am a Certified Public Accountant in Diamond Bar, Los Angeles County, and I ensure that I put your needs above everything else. If you’ve received an IRS letter, or other tax correspondence from the IRS, a state agency, or a local agency, it can be difficult to know what to do next. I represent clients who owe IRS penalties, interest, and taxes. I also help you and your company out in case you have become victims of fraud. I offer my services across Diamond Bar, Los Angeles, Oceanside, Orange County, Riverside County, San Diego County, and the surrounding areas.

To learn more about my services, please click here. Have a question? I’d love to hear from you. Contact me here.