{"id":2158,"date":"2022-04-12T21:13:35","date_gmt":"2022-04-12T21:13:35","guid":{"rendered":"https:\/\/sacramentobankruptcylawyer.us\/?p=2158"},"modified":"2022-04-12T21:13:36","modified_gmt":"2022-04-12T21:13:36","slug":"payroll-taxes-bankruptcy","status":"publish","type":"post","link":"https:\/\/sacramentobankruptcylawyer.us\/payroll-taxes-bankruptcy\/","title":{"rendered":"Payroll Taxes &#038; Bankruptcy"},"content":{"rendered":"\n<p>It&#8217;s common to delay tax payments when money is tight.  For instance, a struggling real estate agent might miss a quarterly estimated tax payment, or a small business may be tempted to skip a payroll tax payment.  However, missed payroll tax payments can quickly snowball with penalties and interest.  For instance, the IRS can hold a responsible party personally liable for payroll taxes and assess the Trust Fund Recovery Penalty which is equal to 100% of the withheld employee portion of payroll taxes.  When payroll tax liability becomes too great to bear, some small businesses and individuals consider filing bankruptcy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Does Bankruptcy Eliminate Payroll Tax Debt?<\/h2>\n\n\n\n<p>No.  Chapter 7 and Chapter 13 bankruptcy do not eliminate payroll tax debt.  Payroll taxes withheld by an employer are considered withholding tax claims and are non-dischargeable in bankruptcy.  (<a href=\"https:\/\/law.cornell.edu\/uscode\/text\/11\/523\">11 USC 523(a)(1)(A)<\/a>).  <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Can You Resolve Payroll Tax Debt?<\/h2>\n\n\n\n<p>Since bankruptcy will not help, businesses and individuals with payroll tax liability need to consider other tax resolution options.  An <a rel=\"noreferrer noopener\" href=\"https:\/\/sacramentotaxlawyers.com\/business-payroll-tax\/\" target=\"_blank\">experienced tax attorney<\/a> can help clients secure an installment agreement with the IRS and EDD.  Likewise, a tax attorney can pursue an offer in compromise or a hardship letter. <\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s common to delay tax payments when money is tight. For instance, a struggling real estate agent might miss a quarterly estimated tax payment, or a small business may be tempted to skip a payroll tax payment. However, missed payroll tax payments can quickly snowball with penalties and interest. For instance, the IRS can hold [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/posts\/2158"}],"collection":[{"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/comments?post=2158"}],"version-history":[{"count":1,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/posts\/2158\/revisions"}],"predecessor-version":[{"id":2159,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/posts\/2158\/revisions\/2159"}],"wp:attachment":[{"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/media?parent=2158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/categories?post=2158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sacramentobankruptcylawyer.us\/wp-json\/wp\/v2\/tags?post=2158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}