A Concrete & Masonry Company Settles About $118,000 in Back Payroll Taxes Into a Monthly Plan
The situation
A concrete and masonry company from FL came to PFGTAX owing about $118,000 to the IRS. The balance was back payroll taxes — the income tax, Social Security, and Medicare withheld from employee paychecks (Form 941) plus federal unemployment tax (Form 940) — and it had built up across tax periods running from 2017 through 2021. The IRS had already filed a federal tax lien, a public legal claim against the company’s property. For a contractor that depends on its credit, its equipment, and steady payroll, a balance that size with a lien attached is the kind of problem that can shut a business down.
What we did
PFGTAX took over dealing with the IRS directly. We pulled together the company’s full financial picture — income, operating costs, and what it could realistically afford each month — and documented it in the format the IRS requires. From there we negotiated an installment agreement, a monthly payment plan, and set it up as a direct debit so it would stay in good standing.
The outcome
The IRS accepted a signed installment agreement at $2,230 per month, beginning January 2022. An installment agreement lets a taxpayer pay what it owes over time instead of all at once; as long as the payments are made on time, the returns are filed on time, and no new balance builds up, the IRS holds off on levies — seizing bank funds or receivables — while the agreement is in place.
That turned an open-ended, six-figure threat into one predictable monthly payment the owner could budget around. The federal tax lien stays on record until the balance is satisfied, so we also explained how staying current on the agreement and on future filings is what protects the business going forward.
Why it mattered
The company kept operating, kept its crews paid, and replaced the constant pressure of a large unpaid IRS balance with a single monthly payment it could plan for.
Every case is different. Outcomes depend on a taxpayer’s specific financial situation, and PFGTAX does not guarantee any particular result or reduction in tax debt.