Can one make one Offer In Compromise to cover both personal taxes and payroll taxes?
- November 13, 2018
- David Greene
- Comments Off on Can one make one Offer In Compromise to cover both personal taxes and payroll taxes?
Thank you for your question. I need more information to answer the question fully, but I will answer it for different scenarios in this week’s and a later column. The first situation is if your company is a sole proprietorship (i.e., not incorporated). This analysis will also apply to a Partnership. It does not matter whether the company is out of business or still in business. I also assume that you report the company income on a Schedule “C” under your Social Security number with your 1040 form. If so you can file one Offer for the entire amount due since you are fully liable for all the taxes. If you obtained a separate FEIN for the company and reported payroll taxes under that FEIN, you would have the choice of filing either one or two separate Offers, although it would be more advantageous to file only one. Next week I will answer the question if the company is incorporated.