The best course of action when you have missed payroll tax payments generally depends on the amount that you owe and your payment history. If you contact the IRS as soon as you discover that you are unable to make the payments, your chances of having a payment plan approved are much greater than if you stall or try to wait and make a lump sum payment.
Your Payroll Tax Obligation
Payroll taxes should generally be paid on or before the deadline to avoid late fees, interest and other penalties. If you are delinquent on these payments, then you have the option of doing nothing until you are able to pay the entire liability at once. However, depending on the amount of your tax liability, the IRS may take legal action before you are able to make your payment. Further, allowing the entire balance to sit idly in delinquency will result in an increase of the interest and the penalties that are assessed to your obligation.
If you have an overdue payroll tax obligation, your best bet in every instance is to contact the IRS as soon as possible to discuss the possibility of a payment arrangement. This way, you can meet your obligation while minimizing extra costs. This course of action can help you to avoid potentially serious legal ramifications if the debt is too long overdue. You may also be able to ask the IRS for leniency in the payment arrangement or to have the penalties on the liability waived since you are making the effort to contact them and deal with the issue proactively.
You may not wish to negotiate with the IRS on your own, however. Often calling a lawyer is going to be your best option in this situation in order to get the best possible results.