Missed 941 deposits do not stay a company problem. The IRS escalates on a schedule, and at the end of it the trust fund portion gets assessed against the owner individually. The earlier an attorney is involved, the more options are still on the table.
The sequence
Payroll tax enforcement is not random. It moves through defined stages, and each one closes doors the previous stage left open. Find your position — it determines what can still be done.
Cash is tight, payroll has to clear, the deposit waits until next week. Failure-to-deposit penalties begin accruing immediately.
Every option openAutomated collection notices for the delinquent quarters. Still machine-driven, still recoverable without much friction.
Best time to actThe case leaves automated collection and goes to a human being with field authority who can levy, summons records, and visit unannounced.
Options narrowingThe RO investigates who was responsible for the unpaid trust fund taxes. This interview builds the record for a personal assessment.
Personal exposure beginsThe IRS names you personally and proposes assessing the trust fund portion against you. A limited protest window opens, generally 60 days.
Deadline runningNow a personal debt. Collectible from your accounts and wages, it survives closing the business, and it is generally not dischargeable in bankruptcy.
Hardest positionTimelines vary by case, territory, and Revenue Officer workload. The order is consistent; the speed is not. Waiting is the only move that reliably makes it worse.
First 30 days
Payroll tax representation is not a filing exercise. Here is what actually happens once you retain the firm.
Form 2848 is filed immediately. The Revenue Officer calls this office instead of walking into your business or calling your staff.
Full transcript analysis across all delinquent periods, separating trust fund from non-trust-fund so you know your real personal exposure.
Current-quarter compliance is a precondition for nearly every resolution path. We set that up first, because nothing else works without it.
We evaluate the responsibility and willfulness factors before the IRS interviews anyone, so the record gets built with your defense already in view.
The distinction
Payroll providers, bookkeepers, and CPAs are valuable — and they are also the people the IRS summonses for records when it builds a trust fund case. None of them carry attorney–client privilege. Your conversations with them are discoverable.
The national tax resolution companies advertising on radio and television are staffed by non-attorneys. They cannot represent you in Tax Court, they cannot litigate a refund suit, and they cannot offer privilege on the conversations where you explain exactly why the deposits were not made.
A Trust Fund Recovery Penalty case turns on facts about your own conduct — what you knew, what authority you had, which creditors you paid instead. That is a legal defense, and it should be built by a lawyer.
Tim Wooten has 25 years of federal tax litigation experience and handles every case in this firm personally.
📞 Call (404) 800-3099
Common questions
Ready to take the first step?
Confidential case evaluation — no pressure, no obligation. Tim Wooten will personally review your situation.
Gower, Wooten & Darneille, LLC · 4200 Northside Parkway NW, Building 12, Atlanta, Georgia 30327