Home | How to Resolve Your 941 Tax Debt Problems

How to Resolve Your 941 Tax Debt Problems

Aug 31, 2022

One of the most common services our business clients approach us about is 941 tax debt solutions. The reason the IRS is particularly aggressive in its collection efforts for this type of tax is because most of it is directly withheld from employee paychecks. If you have found yourself in this situation, we want you to know that you are not alone, and Golden Lion Tax Solutions is here to help you resolve the issue. It doesn't matter how or why you ended up in need of 941 tax debt solutions, what matters is you have someone who can help provide a solution.

We work with small and mid-size business owners who have encountered a 941 payroll tax issue, whether it happened because of a lack of knowledge, due to an accident, or even by design due to financial limitations! We are not here to judge you, only to help you move forward with the best resolution to suit your business's situation. At Golden Lion Tax Solutions, our focus is on building a relationship with our clients, educating them about what went wrong so that they won't find themselves back in the same situation in the future, and guiding them to the right 941 tax debt solution.

What are 941 Taxes?

As a business owner with employees, certain payroll tax deposits must be made, including:

  • Federal Income Tax
  • Medicare Tax
  • Social Security Tax

The employer is responsible for deducting these taxes from employee wages, depositing them with the Federal Government on their behalf, and submitting a matching contribution for Medicare and Social Security. These tax liabilities are then reported to the IRS every quarter using Form 941, Employer’s Quarterly Federal Tax Return.

How Do 941 Tax Problems Arise?

When our clients seek help for 941 tax debt solutions, the problem arises because the payroll tax return was not filed or was filed late, tax deposits required throughout the quarter were late, partially made, or not made at all, or a combination of all those actions.

If you have already paid the necessary payroll tax deposits but the return wasn’t timely filed, it may be possible to submit the return as quickly as possible and address any penalty the IRS may assess. Where 941 tax debt solutions become a little trickier is when no payroll tax deposits are made, or incorrect deposits were made that create a deficit when the quarterly return is processed.

Some business owners, especially ones newer to the reporting and paying process, become confused with this two-part process. First, the business needs to deposit the taxes on a schedule dictated by the size and frequency of its payroll. Depending on your business's payroll size, you should make those deposits semi-weekly, monthly, or quarterly. Skipping one or more of these deposits is where the trouble starts. Whether you have just forgotten to make a deposit or purposely missed one to free up some cash flow with the intent of catching up later, the final result will be the same. The second step of the process is reporting the 941 payroll tax. This step lets the Federal Government know how much income, Medicare, and Social Security taxes were withheld from employee paychecks, how much matching obligation the business had, and the required dates the tax deposits should have been made.

Once this two-step process is done each quarter, the IRS’ database starts to compute the accuracy of the quarterly filing and the associated deposits to determine if the business’ obligations were met. When a discrepancy is found, the IRS’ actions start slow: reminder letters begin to roll out as established notification timelines occur according to the Internal Revenue Manual, the IRS’ handbook. Thereafter, as weeks and months pass, the collection efforts quickly escalate with increasing penalties assessed, interest beginning to accumulate, and threats of collection action, such as bank account levies or accounts receivable garnishments, being made.

941 Tax Debt Solutions

Suppose you have found yourself and your business in this position and need a 941 tax debt solution. If you find that the problem has escalated beyond being able to make the missed deposit payment or submit the correct forms, the important thing is to confront the issue. Tax debt is not something that is going to go away on its own. Ignoring it will only make things worse. At Golden Lion Tax Solutions, we understand how daunting it can be, but it is essential to know that we are here to support you through the process. Your peace of mind starts with us! We will help you choose the best 941 tax debt solutions to meet your needs, and we will stay by your side, guiding you through the entire process. We will advocate for you and your business and help you get your finances back on track. We believe in forming a partnership with our clients built on trust and transparency on both sides. Knowledge is power, and we will ensure you understand every step and why. When you know the process, you will be armed with the knowledge to help you avoid making similar mistakes in the future.

Don't let your payroll tax issues get out of hand. Golden Lion Tax Solutions can guide you to the most appropriate 941 tax debt solutions and help alleviate your stress.


Trust. Protection. Wisdom.

Your future and your family deserve the right protection. Golden Lion Tax Solutions will be your advisor and confidant throughout the entire journey. We guarantee to offer you or your business best-case solutions for your tax debt. We are by your side every step of the way. Start now and get your life back.

For help with your tax debts, email contactus@goldenliontaxsolutions.com or call 833-LION-TAX (833-546-6829)

Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate solution to fit your situation.