| Past due payroll taxes can cause you to lose your | | | | case to the Criminal Investigation Division and ultimately |
| business and in some cases, your freedom. The IRS is | | | | to the Department of Justice if they can prove that |
| focusing increased tax compliance efforts on small | | | | you intentionally (very low thresholds) didn't file and/or |
| businesses so it is important to know the common | | | | pay. |
| payroll tax audit triggers and learn how to avoid | | | | 5. Borrowing from payroll taxes is against the law. |
| severe IRS penalties, huge tax debt and federal | | | | Many small and mid-size businesses use the money |
| criminal investigation. | | | | they collect from payroll taxes to pay their operating |
| 1. Small businesses are the most likely target of | | | | expenses. The money collected from employees to |
| increased tax compliance enforcement Small business | | | | pay their share of federal withheld tax, FICA and |
| owners have been identified by the IRS as the largest | | | | Medicare (Social Security) does not belong to the |
| source of uncollected taxes. And because they are | | | | business and must be accounted for and paid to the |
| known to be big tax evaders, the IRS tends to focus | | | | government. Generally, one must make a federal tax |
| their enforcement efforts on small businesses, | | | | deposit (by tax filing service, phone, or in person at a |
| especially during economic downturns. | | | | bank) 3 days after the pay date of the pay roll |
| 2. You can lose your business due to extremely | | | | checks. |
| aggressive IRS collection tactics for past due payroll | | | | 6. The IRS can come after business owners |
| taxes When it comes to payroll tax debt, the IRS | | | | individually for payroll taxes owed. The IRS can |
| collection Revenue Officer has unyielding power and | | | | access what is called the Trust Fund Recovery |
| authority. They have the power to padlock your front | | | | Penalty (TFRP) against owners and shareholders. The |
| doors, putting you out of business, without obtaining a | | | | IRS is the only creditor on the planet that can "pierce" |
| court order. They can seize your machinery and | | | | the corporate veil and go after individuals, which can |
| equipment. They can contact your customers, and if | | | | be a very scary situation. |
| your customers owe you any money, the IRS will | | | | 7. What do I do if I get audited? If you owe payroll |
| intercept these funds through their powerful levying | | | | taxes, you need to get expert professional help before |
| authority. You must take immediate action to deal with | | | | it’s too late. Representing yourself before the IRS |
| a payroll tax issues, or you will find yourself out of | | | | would be like going to court without a lawyer. And you |
| business. | | | | do not want to take any chances when dealing with |
| 3. Payroll tax penalties can add up quickly and | | | | the IRS. |
| generate huge tax debt The penalties assessed on | | | | You need the help of experienced Tax Attorneys and |
| delinquent payroll tax deposits or filings can | | | | or a Certified Tax Resolution Specialist who have |
| dramatically increase your total tax bill. Whether you | | | | experience negotiating hundreds of these cases. They |
| operate your small business owners as a sole | | | | can defend you and advise you on viable options |
| proprietorship, corporation, or LLCs, the taxes you owe | | | | including Payment ("stepped") plans, Offers in |
| can cause you to lose your business. There are three | | | | Compromise, Computational Abatement of Penalties, |
| major penalties you can be hit with (failure to file, failure | | | | Abatement of penalties due to reasonable cause, and |
| to deposit, and the failure to pay), which can add up to | | | | analyzing the Statute of limitation to assess. |
| about 33% plus interest if you don’t pay in just 16 | | | | For more advice and information on payroll tax debt |
| days after you have filed the 941 (Payroll Tax Return) | | | | and how to get professional help if you’re in trouble |
| past the due date! | | | | with the IRS, visit the Tax Resolution Services web |
| 4. Not filing or paying your payroll taxes can be | | | | site for a free tax relief consultation, or check out the |
| considered a federal crime. The IRS can refer your | | | | Tax Resolution University Blog. |