TAX PROBLEM: You Withheld Federal Income and Payroll Taxes from Your Employees’ Wages and did not Pay Them to the IRS. It seems that company officers often don’t want to be bothered with accounting or tax matters. As a result, it is not uncommon for a director or chairman to instruct an employee to take care of handling and paying payroll taxes. However, if that employee fails to pay withheld payroll taxes, delegating that authority does not relieve a person of responsibility to collect and pay taxes to the IRS. Importantly, penalties can be imposed on any responsible person, regardless of the form of business entity.

For a business with numerous employees, unpaid trust fund taxes can add up quickly, and the trust fund penalty consequently assessed against a responsible person can be huge. Not only that, the penalty is not dischargeable in bankruptcy.

CONSEQUENCE: Failure to Properly Withhold and Pay Over Employment Taxes Could Result in Criminal Employment Tax Investigations of All Responsible Parties!
The tax law provides that “any person required to collect, truthfully account for, and pay over any tax imposed by” the Internal Revenue Code who willfully fails to do so, will, “in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax … not collected … and paid over.” The term “any person” is important because this section of the law allows the IRS to pierce the corporate veil and proceed against any person bearing responsibility for the company’s failure to pay over trust fund taxes, thereby making that person – or persons – personally liable for the employer’s unpaid payroll taxes. That means the penalty can be imposed on any responsible person, regardless of the form of business entity.

Even worse, failing to pay trust fund taxes can lead to criminal charges, since a willful failure to pay over or collect tax is a felony punishable by up to a $10,000 fine. five years in prison, or both. However, the IRS reserves criminal charges for the worst cases, usually where the responsible person diverted the money for his or her personal use, as opposed to a situation of facing hard times and using the money to pay other creditors in an attempt to keep the business afloat.

SOLUTION: Turn This Complex Business Tax Issue Into a Non-issue with Help From the Team at Tax Problem Solver!
Payroll taxes are the government’s money, and when those taxes are not paid, the government believes those who have not paid are stealing its money. The government does not take this lightly and will not back off in its efforts to collect the tax money it is owed. They will prosecute not only owners, but also whoever is tasked with or involved with payroll withholdings.To protect your assets and keep you from possible incarceration, 35+ year tax attorney veteran Larry Heinkel can put together a personalized game plan to help you find the option that’s right for you!

Larry leverages his 35+ years of experience to help you understand just what to do to save the life of your business. His skill as a tough negotiator can keep you from higher interest rates, changed terms on contracts, even totally ruined credit.