I have practiced law for more than 30 years, and I have represented many types of businesses, including contractors and builders, in their tax disputes with the IRS and state authorities. There are many ways contractors and builders can get into tax trouble. One of the most common is failure to make employment tax deposits and file 941 (employment tax) returns. The penalties on these taxes are TOUGH because the trust fund portion is the employee’s money that was withheld from wages. The trust fund portion can be assessed against ANYONE who had any say over which bills were paid before these taxes. That can even include administrative staff.
Here is an example of what I have accomplished for a LOCAL BUILDER/CONTRACTOR.
My client had a partner who told him he was making all tax deposits. My client did not know that his partner was lying to him, and pocketing the money because my guy was out in the field doing all the HEAVY LIFTING AND REAL WORK. Eventually, the IRS imposed the TRUST FUND PENALTY on my client, even though he hardly spent any time in the office. He was on the hook just because he was an owner, even though the partnership papers specifically said that untrustworthy partner was the TAX MATTERS PARTNER, who had full control of all taxes for the partnership. The IRS said my client owed hundreds of thousands of dollars. Ultimately, my client ended up paying less than half, and was allowed to the pay the remaining amount of six years. Best of all, the IRS went after the partner who pocketed the money.
How did I get this result? By FIGHTING HARD. First, we fought the penalty. Then we appealed, and got the penalty reduced. Then, we applied for an installment agreement, and appealed again to get reasonable terms. Then we made sure we got credit for all money the dishonest partner paid.
No matter how long your clients have been suffering with tax problems, I know what they are going through. I am local, will come to your office to meet your client, and I will PERSONALLY HANDLE the case.
If you can’t help a client who owes the IRS, call your Kansas City Tax Attorney, Jeffrey R. Siegel, at (913) 735-4829.