Delinquent Employment Taxes

The IRS is taking steps to collect from the delinquent taxpayers by implementing new programs.  First of these programs is called the “903 Letter”.  The letter is sent to a delinquent taxpayer for each quarter employment taxes are not paid, which demonstrates the knowledge of unpaid taxes, which could be used in criminal proceedings later.    

Many taxpayers use the EFTPS system to file their taxes.  The IRS is programming the Electronic Federal Tax Payment System to notify them when an employer misses an employment tax payment within 48 to 72 hours.  This will assist the IRS reaching out to a delinquent taxpayer faster. The IRS is working towards a classification system to help them identify the best way reach out to the delinquent taxpayer to help get them back in compliance.    

Click here to learn more about the “903 Letter” and the collection process.  

The best business practice is to pay employee & employer taxes on time and in full.  This will help avoid late fees and penalties to your business.

Click here to learn more about IRS penalties for late payroll tax payment.  

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