Payroll Problems Fixed by a NYC CPA

Got a payroll tax letter? Send a photo of it to chris@licpanyc.com or call (516) 518-6678. A CPA tells you how serious it is in a free 15-minute call.

The payroll problems we fix most

• Taxes withheld but never sent in. Paychecks went out, but the federal and New York withholding was never deposited. Often a check was cut outside the payroll software.
• Quarterly returns not filed. Form 941 or NYS-45 is missing for one or more quarters, even quarters with zero wages.
• Your provider's payments failed. The prior accountant or payroll company scheduled tax payments that bounced, and nobody told you until the notices came.
• NYS Department of Labor bills, warrants or judgments for unemployment insurance contributions reported on the NYS-45.
• IRS balance-due notices on Form 941 (CP161, CP501, CP504) full of late-deposit penalties.
• W-2s that do not match the 941s, so the Social Security Administration and the IRS send mismatch letters.
• The S corporation owner was never on payroll, or took distributions with no salary at all.

Why this one cannot wait

Payroll tax is the one tax the IRS treats as your money held in trust. If the withheld part is not paid, the IRS can assess the Trust Fund Recovery Penalty against the owner personally, even if the business is an LLC or a corporation. Late deposit penalties also stack quickly: 2% if a deposit is 1 to 5 days late, 5% at 6 to 15 days, 10% after that, and 15% if it is still unpaid 10 days after the first notice. New York State and the Department of Labor add their own penalties and interest, and can file a warrant that becomes a public judgment.

How we fix it

• 1. Free 15-minute call. Send every letter you have. We tell you what is urgent.
• 2. Power of attorney. You sign IRS Form 2848 and New York Form POA-1 so the agencies talk to us.
• 3. Payroll problem review ($350). We pull your IRS payroll transcripts and New York records, compare them with what was actually paid to employees, and give you a written list of every missing return, payment and penalty. The $350 is credited toward the fix.
• 4. Catch up. We file the missing 941, 940 and NYS-45 returns, correct W-2s if needed, and line up the payments.
• 5. Ask for the penalties back. First-time abatement and reasonable-cause requests often remove a large share of the penalties, including when a provider's payment failed.
• 6. Run it right from here. Your payroll moves to us at $275 a month including the first employee, so every deposit and filing is done on time.

Behind on more than payroll? See tax debt help for payment plans and income tax balances.