Thoughts on Potential Payroll Case

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    I have an appointment on Thursday with a potential 941 resolution client. The amount due is not much but this will be my first case so glad for it. I think I have a good general outline of how this all works but here’s what I know and my thoughts for resolution. Appreciate any additional help and ideas on how much to charge.

    Married couple own a coffee/bakery store in LLC, owned 50/50. They just paid off several quarters of unpaid payroll taxes and “found out” from the IRS they owe several quarters more. On top of that they have not paid all of the current quarter’s payroll taxes. I believe the total taxes at issue are around $25k. Final fact, appears RO is involved as members received a request to appear for a 4180 interview next month.

    First, can the business be saved? Is there sufficient cash flow to pay operating expenses and current/prior taxes.
    Second, figure out how the business was managed and among the owners who did what. My concern here is that one spouse did everything while the other worked elsewhere. Concerned about conflict of interest issues.
    Third, figure out what the unpaid balance assessed is to see if we may be able to get an express IBTF installment agreement.
    Fourth, how long has this problem been going on? See what the likelihood is that we can avoid a TFRP assessment (i.e. can I paint a sympathetic picture of the clients and a solid plan for payment to avoid personal liability).
    Fifth, what are the owners personal assets and cash-flow?

    These are the five areas I am thinking about in advance of my meeting. While the overall balance isn’t much, I think this is going to require a bit of work to keep things contained. I honestly am not sure what to charge as a lot depends on the amount due and the viability of the business.

    Thank you in advance!

    Jim Wade

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