Does your business owe back payroll taxes?
If so, these are serious tax compliance issues we can assist you in resolving before this happens to you! When business owners fail to timely and properly make the payroll tax liability payments it’s much more of a problem than just the fact that the payroll taxes have not been paid.
The IRS can assess Trust Fund Recovery Penalties on the business owners, officers, shareholders, partners, employees, spouses or anyone else who had knowledge of the outstanding payroll taxes and the capability to have made those payments but didn’t do so. Anyone who has accounts and payments authority or ability is at risk for a Trust Fund Recovery penalty assessment that is 100% of the outstanding payroll taxes! That’s not a misprint folks, TFRP is a 100% civil penalty.
That means that the TFRP is assessed to the responsible parties as a personal liability and when it is not paid by those responsible parties personally, then the IRS can pursue collection by a levy which is an assignment for collection. Keep in mind a TFRP 100% penalty is in addition to the outstanding payroll taxes due.
Click on the link below to read a Tax Court case this week of a business owner who failed to pay the payroll taxes, was assessed TFRP penalty and although he claimed he suffered a “financial” hardship neither the IRS nor the Court sees his claims of financial hardship quite the same way he does.
Folks, please read this so you understand what can and will happen. Let us help you resolve any outstanding payroll tax liability issues before there’s a TFRP penalty assessment.
Share this information if you know of any business owner’s in these circumstances!
Tax Facts Resolution Representation
South Region Center