Automated Tax Credit - Tax Debt Resolution
Glossary

Letter 4903: Request for Employment Tax Payment

The IRS Letter 4903 is sent to employers who have an unpaid employment tax balance. This letter serves as a formal reminder that employment taxes are due, which may include payroll taxes withheld from employees or the employer’s portion of FICA taxes. Non-payment of employment taxes is a serious offense, and Letter 4903 serves as a request for immediate payment to avoid further penalties and enforcement.

Key components of IRS Letter 4903 include:

  1. Explanation of Employment Tax Obligation
    Letter 4903 details the specific taxes owed, such as Social Security, Medicare, and federal income tax withheld from employee wages. Employers are required by law to remit these taxes on behalf of their employees and meet quarterly deposit schedules.
  2. Payment Options
    Employers receiving this letter are encouraged to pay the full amount owed to avoid further penalties and interest. If full payment is not possible, options include:

    • Requesting a short-term payment plan: For smaller balances, employers may be eligible for a brief extension to make payments.
    • Setting up an installment agreement: Employers can negotiate a monthly payment plan to gradually settle the debt while avoiding more aggressive IRS actions.
  3. Consequences of Ignoring the Notice
    If the employer fails to respond, the IRS may initiate enforcement actions, including liens or levies, to recover the unpaid employment taxes. The IRS may also impose the Trust Fund Recovery Penalty, which holds company officers personally liable for unpaid payroll taxes.
  4. Importance to Tax Debt Resolution
    Prompt action on Letter 4903 is essential for employers to avoid the legal and financial consequences of unpaid employment taxes. By addressing this notice, employers can manage their obligations, maintain compliance, and protect themselves and their business from more severe IRS enforcement actions.

Letter 4903 emphasizes the importance of meeting employment tax obligations and offers businesses a pathway to address their liabilities proactively, supporting tax debt resolution efforts.

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