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Liability for Uncollected Taxes

Legal counsel for individuals and businesses facing liability for unpaid taxes at the federal and state level.

Understanding Liability for Uncollected Taxes

When taxes go unpaid — whether to the IRS or the Minnesota Department of Revenue — the consequences can be severe. Pridgeon & Zoss, PLLC represents clients throughout the Minneapolis–St. Paul metropolitan area and western Wisconsin who are confronting liability for uncollected taxes. Our firm works to identify the most effective path forward for each situation.

Federal IRS Liability

The IRS has broad authority to pursue unpaid tax obligations. Federal liability can arise from income tax deficiencies, payroll tax issues, trust fund assessments, or failure to file. The agency may impose liens, levy bank accounts, garnish wages, or seize assets. Early intervention with experienced counsel can help protect your rights and explore resolution options before enforcement escalates.

Minnesota Department of Revenue Liability

State-level tax liability carries its own set of challenges. The Minnesota Department of Revenue pursues unpaid individual income taxes, business taxes, and sales and use tax obligations. State enforcement actions can compound federal problems, making coordinated representation essential for clients facing liability at both levels.

Penalties and Fines

Uncollected taxes often grow significantly over time due to accruing penalties and interest. Both the IRS and Minnesota Department of Revenue assess penalties for late filing, late payment, and underpayment of estimated taxes. In some cases, penalties can be abated or reduced — but only with timely and well-supported advocacy.

Innocent Spouse Relief

When a tax liability stems from a spouse's or former spouse's actions, innocent spouse relief may provide a path to protection. The IRS offers several forms of relief for taxpayers who were unaware of errors or omissions on a joint return. Eligibility depends on the specific facts of each case, and the application process requires careful documentation and legal analysis.

If you are facing liability for uncollected taxes, contact Pridgeon & Zoss, PLLC to discuss your situation. Our firm provides focused representation in tax matters before the IRS and Minnesota Department of Revenue.