Enforced Collection Actions
If taxes are not paid timely, and the IRS is not notified why the taxes cannot be paid, the law requires that enforcement action be taken, which could include the following:
- Issuing a Notice of Levy on salary and other income, bank accounts or property (legally seize property to satisfy the tax debt)
- Assessing a Trust Fund Recovery Penalty for certain unpaid employment taxes
- Issuing a Summons to the taxpayer or third parties to secure information to prepare unfiled tax returns or determine the taxpayer’s ability to pay
Note: To collect delinquent tax debts, certain federal payments (vendor, OPM, SSA, federal salary, and federal employee travel) disbursed by the Department of the Treasury, Financial Management Service (FMS) may be subject to a levy through the Federal Payment Levy Program (FPLP).
Important Information for Employers
Employment taxes are:
- The amounts an employer should withhold from employees for income, social security, and Medicare taxes (also called withheld or trust fund taxes), plus
- The amount of social security tax and Medicare taxes an employer pays on behalf of each employee
Paying employment taxes late, or not including payment with a return if required, could result in additional penalties and interest on any unpaid balance. Failure to Deposit (FTD) penalties of up to 15 percent of the amount not deposited may be charged, depending on how many days the payment is late.
Enrolling in and making current tax deposits through the Electronic Federal Tax Payment System (EFTPS) can help employers stay up-to-date with their payment requirements.