Client Saves over Half Million Dollars by Resolving Payroll Tax Debt

By the time an electrical company came to Omni Financial, they had accrued approximately $570,000 in back taxes. Even though they had finally paid their overdue payroll taxes, they still owed the IRS about $450,000 in payroll tax penalties plus $120,000 in 1120 taxes.

Omni quickly went to work on the account and had the client’s voluntary payment of $18,000 applied to their fourth quarter trust fund tax balance so no new payroll taxes could accrue. They then advised the client to close the business and reopen as a new company.

The IRS Revenue Officer signed off on the deal, and the business was allowed to close as a defunct corporation with $50,000 cash paid to the IRS for the equity in the business equipment. This move allowed the client to avoid the tax penalties as well as the unpaid 1120 taxes and save approximately $520,000.

Are you battling payroll tax debt? Contact Omni Financialfor more information about how we can help you find payroll tax relief.