IRS Tax Relief for Kitchen Remodelers Get Help Before Payroll Tax Becomes Personal
Updated
A kitchen job runs on deposits: cabinets ordered weeks ahead, slabs templated and cut, and a designer and install crew on payroll the whole time. When a change order runs over or the showroom rent comes due, the payroll tax deposit is the easiest bill to push back, and it's the one the IRS can turn into your personal debt.
15%
The top failure-to-deposit penalty on a late payroll tax deposit, before any interest is added.
How it happens
Why Kitchen Remodelers Fall Behind With the IRS
Kitchens are fixed-price work with a lot of moving parts. The homeowner picks a different door style, the fabricator finds a wall that's out of square, the appliance package changes after the boxes are built. Some of that becomes a signed change order. Plenty of it gets absorbed, and the money that absorbs it is often the money that was meant for taxes.
Deposits make it harder to see. Cabinets and slabs are paid for long before the job is done, so the cash from this month's signed contracts covers last month's materials. On paper the business is busy and profitable. In the bank, there's never a clear pile sitting aside for the IRS.
Design-build firms carry a payroll on top of that: designers, project managers, installers, and showroom staff. The income tax and Social Security you withhold from their checks is trust fund money, held for the IRS until you deposit it (IRS, trust fund recovery penalty). Fall behind on those deposits and the debt can follow you personally.
IRS problems
The IRS Problems Kitchen Remodelers Bring Us
Most kitchen firms we talk to are busy, not failing. The IRS problem usually started in one rough quarter and grew because the next jobs kept everyone too busy to look back.
Missed 941 Payroll Deposits
When the deposit schedule slips, failure-to-deposit penalties run from 2% to 15% of each late deposit. We pull the account transcripts, find every open quarter, and work them into one resolution.
See how we helpThe Trust Fund Recovery Penalty
The IRS can assess the withheld part of unpaid payroll taxes against owners and anyone else with authority over which bills get paid. If a proposal letter arrives, you have 60 days to appeal, and we can represent you through it.
See how we helpChange Orders That Ate the Tax Money
Overruns you absorbed on fixed-price jobs can leave a profitable year with no cash to pay its tax. We figure out what you owe across every open year and request a payment plan sized to what the business really clears.
See how we helpLevies on Cabinet and Countertop Deposits
A bank levy freezes what's in your business account, including a deposit a homeowner just paid for an order you haven't placed. We step in during the 21-day hold and request a release.
See how we helpCard Deposits on a 1099-K
Homeowners who put a deposit on a card show up on the 1099-K your processor sends the IRS, whatever the amount. If those totals don't line up with your returns, we reconcile them and answer the notice for you.
See how we helpLate Filing and Late Payment Penalties
On a remodeler's balance, penalties can be a big share of the total. We request first-time abatement when your history qualifies, or reasonable cause when something outside your control caused the miss.
See how we help
By the numbers
Where a Kitchen Remodeler's Dollar Goes
Residential remodelers brought in $129.1 billion in 2022, and $45.2 billion of it went straight to materials, according to the Census Bureau's 2022 Economic Census. That's about 35 cents of every dollar, and in a kitchen, cabinets, slabs, and appliances make up a big part of it.
The payroll side is big too. Remodelers had about 459,000 people on payroll in 2025, at an average pay of $64,356 a year (BLS, QCEW). Every one of those paychecks carries withholding the IRS expects to see deposited on schedule.
$129.1B
Revenue of U.S. residential remodelers in the 2022 Economic Census, across 128,187 establishments.
35¢
Of each remodeling revenue dollar spent on materials in 2022, or $45.2 billion in all.
459,000
People on residential remodelers' payrolls in 2025, at an average pay of $64,356.
Sources: Census Bureau, 2022 Economic Census: Construction · BLS, Quarterly Census of Employment and Wages, 2025
Your payroll
How Missed Payroll Deposits Become Your Personal IRS Debt
When a design-build firm runs short, the payroll deposit is tempting to push back a week. The penalty starts at 2% for a deposit 1 to 5 days late and climbs to 10% after 15 days. It reaches 15% once more than 10 days pass after the IRS's first notice (IRS, failure to deposit penalty).
The bigger risk is the trust fund recovery penalty. The IRS can assess it against any responsible person who willfully fails to pay over withheld taxes, and no bad intent is required. Using the money you have to pay other creditors, like a cabinet supplier or the showroom landlord, is treated as an indication of willfulness (IRS, TFRP).
The business doesn't have to close for this to happen. If you get a letter proposing the penalty, you have 60 days to appeal. That letter is where representation matters most, and we'd much rather start working on your quarters before it shows up.
How a payroll shortfall becomes personal
-
A Deposit Gets Pushed Back
The cash goes to a cabinet order or the showroom rent instead of the IRS.
-
Penalties Start Adding Up
Anywhere from 2% to 15% of each late deposit, with interest on top.
-
The IRS Looks for Responsible People
Owners, officers, and whoever decides which bills get paid may be asked for an interview.
-
A Proposal Letter Arrives
You get 60 days to appeal before the penalty is assessed against you personally.
-
We Respond and Work the Quarters
We handle the appeal and the open payroll periods. The IRS makes the decision.
Discreet help
You Don't Have to Explain How It Happened
Your designers, your installers, and your showroom team may have no idea the payroll account is behind. You've probably kept it that way on purpose, so nobody starts worrying about their job. We work quietly, we talk only to you, and owing the IRS says nothing about the quality of the kitchens you build.
Your consultation is free and confidential. Once you hire us and Power of Attorney is on file, the IRS deals with us, so the calls and the back-and-forth stop landing on you.
How We Keep It Discreet
- A free, confidential first conversation
- No judgment about how it happened
- Once Power of Attorney is filed, the IRS contacts us
- Phone, secure document portal, and video, with no office visit
How it works
How We Work a Kitchen Remodeler's IRS Case
Keep running jobs and meeting clients in the showroom. We work by phone, secure upload, and video, and once Power of Attorney is filed, the IRS deals with us on your case.
-
Free Consultation
A representative calls you back, listens to what is going on, and tells you whether we can help.
-
Power of Attorney
We file Form 2848 so the IRS contacts us instead of you.
-
Transcripts and Returns
We pull your IRS transcripts and get any missing returns filed.
-
Request to the IRS
We submit the program request on your behalf. The IRS reviews and decides.
Timelines and outcomes are determined by the IRS based on the facts of each case. Results vary and are not guaranteed.
IRS programs
IRS Programs That Fit Kitchen Remodelers
Installment Agreement
A monthly plan for income tax and payroll balances. Businesses request one through the number on their notice, and penalties and interest keep accruing until the balance is paid, so the payment amount matters.
Penalty Abatement
Starting with 2026 quarterly returns, the IRS's new automatic exemption can skip late-deposit penalties when your prior 12 quarters were on time. For older quarters, we request first-time abatement or reasonable cause.
Lien Assistance
If a Notice of Federal Tax Lien is filed, we look at discharge, subordination, or withdrawal. Subordination can make it easier to get a loan, which matters when you finance trucks or a showroom build-out.
Offer in Compromise
When the payroll and income tax balance is more than the business and your assets could ever cover, an offer may fit. There's a $205 application fee, so we run the IRS math before you apply.
Where we help
Where We Help Kitchen Remodelers
Kitchen firms call us from big metros and small towns, and we handle every case by phone, secure upload, and video. Where we have a local page for your area, it covers the nearby IRS offices and free help.
Frequently asked
Kitchen Remodelers and the IRS: Common Questions
Can the IRS Hold Me Personally Liable for My Company's Payroll Taxes?
I Paid the Cabinet Supplier Instead of the IRS. Does That Matter?
Are My Cabinet Installers Employees or Subcontractors?
A Homeowner Paid Our Deposit by Card. Does the IRS Know?
Can a Tax Lien Affect My Business Financing?
How Are Your Fees Set for a Remodeling Company's Case?
Verified review · Google
Mr. Josh Almonte was very helpful to me explaining everything that I needed to know and answered all of my questions. I would recommend you use this service if you have tax problems.
The help that I received from Josh was truly helpful. I'm grateful that someone like Josh is working with me, keeping me updated to help fix my tax situation.
Sebastian is very informative and answers all my questions right away. Thank you for helping me get my taxes back on track.
Ready to Talk About Your Payroll Tax Problem?
Free consultation with our team. No obligation.
- Free, confidential consultation
- A representative reaches out within minutes
- No obligation