Payroll tax debt is one of the most aggressive areas of IRS enforcement. When employment taxes are not paid, the IRS does not treat it like ordinary tax debt. Collection action can begin quickly and may impact both the business and the individuals involved.
For business owners in Dallas, unresolved payroll tax liabilities can disrupt operations, damage credit, and place personal assets at risk.
Employment taxes include federal income taxes withheld from employees, along with Social Security and Medicare contributions. These are considered trust fund taxes because they are collected from employees and held on behalf of the government. When these funds are not remitted, the IRS prioritizes enforcement.
If payroll taxes remain unpaid, the IRS may assess a Trust Fund Recovery Penalty. This allows the government to pursue individuals personally, not just the company.
Those who may be targeted include:
The IRS conducts interviews to determine who was responsible for collecting and paying employment taxes. If the penalty is assessed, the IRS can seek payment from personal bank accounts, wages, and other assets.
Early representation during this investigation phase is critical.
When payroll taxes go unpaid, enforcement may include:
These actions can severely impact daily operations and cash flow. Acting quickly can help prevent escalation and protect the business.
Our firm communicates directly with the IRS to stabilize the situation and develop a structured plan to resolve the liability.
Payroll tax issues often involve more than missed deposits. We assist Dallas businesses with:
In some cases, financial hardship, internal accounting errors, or mismanagement contributed to the issue. A full review allows us to identify defenses and potential resolution options.
Penalties and interest on payroll tax debt grow quickly. Without proper intervention, the financial consequences can expand rapidly.
With over 10 years of experience and more than 450 clients assisted, our firm helps Dallas business owners address payroll tax problems, defend against personal liability, and restore compliance.
If your business is facing payroll tax enforcement or you have been contacted regarding a Trust Fund Recovery Penalty, call Margolies Law Office today at (469) 626-7760 to schedule a confidential consultation.
“ Andrew Margolies did a great job for my mom who had paid her taxes, but the IRS failed to associate the payment with her account. She kept getting letters demanding payment with accrued interest and fees even though they had cashed her check.
After Andrew started working on it, the letters stopped. We were notified there had been a credit to my mom’s account, and finally the payment was properly applied with a zero balance. She is even receiving a refund.
We’re very happy with Andrew and would highly recommend him.”
“I came to Andrew Margolies with a significant IRS issue that I had been losing sleep over for months. I spoke with Jennifer on the phone, got in the same day for a consultation, and had a full resolution within 2 business days for a reasonable price. Andrew did exactly what he said he was going to do and provided me with a thorough resolution.
Being 9 months pregnant, Andrew was extremely sensitive to my timeline urgency and was on the phone with me at 5pm on a Friday helping me with my case.
Before meeting with Andrew, I called around to 10 different offices. All of those interactions felt like a sales funnel and a money grab. I can’t explain the relief I have having chosen to work with Andrew and having a resolution within days. We’re absolutely thrilled with the value and the experience.”
“100% recommended. I had a problem regarding my tax return since the beginning of 2023 and had been trying to follow up myself until 2025 with no progress. I decided to work with Attorney Andrew and Jennifer and in less than a month my problem was solved.
Attorney Andrew is very knowledgeable with reasonable fees and Jennifer is very responsive to all requests and questions. Most importantly they have business ethics. I will not look further if I have any more tax problems.”
