Tax Relief: Imposed Action for the Collection of Taxes
Posted by LWM Team on Tue, Apr 27, 2010
Enforcement action can take the form of issue of a Notice of Levy. This is carried out on a salary and any additional income, bank accounts or property that is lawfully confiscated to fulfill the tax debt.
Assessing a Trust Fund Recovery Penalty is on behalf of particular employment taxes that are unpaid. Issuing a Summons to a third party or directly to a taxpayer is carried out to acquire information to be used to get ready tax returns that are unfilled or to find out the capacity of the taxpayer to make payment.
It is important the taxpayer knows that to bring in illicit tax debts there must be specific federal payments (federal employee travel, vendor, federal salary, OPM and SSA) by the Department of the Treasury and Financial Management Service that may be incur a levy via the FPLP (Federal payment Levy Program).
Employees must understand what makes up employment taxes:
Quantity of social security tax and Medicare tax paid by the employer for the employee
Quantities that must be withheld by the employer from the employee for medical tax also known as withheld or trust fund tax
An employee may be held liable for the payment of extra penalties as well as interest if employment taxes are paid late. The extra penalties and interest is paid on balances that are overdue. FTD or Failure to Deposit could result in a fine up to fifteen percent on the overdue amount of tax that is late. The amount of the fine is based on the number of late days. It is possible the IRS
may request, under penalty of prosecution, an employer initiates a bank account only for withheld amounts or that employment taxes be paid and filed every month instead of quarterly.
An employer can assist employees in keeping up with tax payment requirements by signing up and paying existing tax deposits via EFTPS or Electronic Federal Tax Payment System.