When it Comes to Payroll Taxes, Don’t Mess With the IRS

When it Comes to Payroll Taxes, Don’t Mess With the IRS

When it Comes to Payroll Taxes, Don’t Mess With the IRS

It’s payday! Everybody loves payday, except for the company making all those payments. It’s not that companies don’t want to pay their employees; rather it’s the high cost of payroll taxes that comes with having those employees. However, that’s the law, so if your company has a payroll then you know it should be paying payroll taxes.

Skipping Out Can Hurt You

Of course, the IRS doesn’t look kindly on any organization or individual that tries to skip out on their taxes. The federal tax agency goes after as many tax dodgers as it can. However, when it comes to payroll taxes, the IRS is very serious. In fact, it pursues payroll taxes with more vigor than most other kinds of taxes. The trust fund money belongs to the government and they are serious about tracking it down when it goes unpaid.

IRS Not Messing Around

If you are late on payroll taxes, or even worse, you don’t pay them at all, then the IRS will be coming. It doesn’t even matter why you were late or skipped out on your payment, or what you were using those funds for; no reason is a good one as far as the IRS is concerned. So what happens when the IRS discovers you aren’t current on your payroll taxes?

No One Is Safe

The implications for those who have delinquent payroll tax accounts are far reaching, and can even include persons who have no idea there is a problem. The IRS will typically make personal assessments against every responsible person, including anyone who has ownership in the company or signature authority within the company. The IRS can even penalize every “responsible person,” whether or not he or she had anything to do with the missing funds.

Not Done Yet

The IRS doesn’t look at anyone in these kinds of situations as an innocent bystander. That means if you are a director or an officer in the company you could end up in hot water. The IRS can even go after individuals on a personal level if the company won’t cooperate. They can even seek a 100 percent penalty, which is the amount of taxes that were not paid, from multiple parties at the same time.

Not Worth the Trouble

So what happens if a company simply won’t cooperate with the IRS? Does the tax agency give up and just move on? Not quite. You didn’t really think Uncle Sam would give up that easy, did you? The IRS, in some cases, will even move to have a business shut down so this kind of situation doesn’t happen again. If the situation is really egregious, the government might even pursue criminal penalties.

Pay Your Taxes On Time

If you are having issues with payroll tax, then make sure you get a handle on the problem right away. Skipping out on payroll taxes can land you in hot water with the IRS and no company wants the taxman breathing down its neck. If you need help, then perhaps a payroll service would be beneficial to your company. Likewise, if you have any kinds of tax questions or concerns then seek the help of an experienced tax and accounting company, like GROCO.

If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.


Alan L. Olsen, CPA, Wikipedia Bio



GROCO.com is a proud sponsor of The American Dreams Show.



The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business. Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most. They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges. Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in

Should You Pay Estimated Taxes?

For most people tax time only comes once year. However, for anyone who has to pay estimated taxes a large tax bill could be due several times a year. Again, most people do not have to worry about paying estimated taxes, but there are several circumstances that will put you in that category. The most…

Do not Be the Victim of a Tax Scam

As the tax season continues to be in full swing we here at GROCO continue to hear of more and more tax scams making the rounds. We’ve discussed tax scams before, but it never hurts to repeat this important information, especially at this time of year when tax scammers are so prevalent. In fact, several…

Need Help With Your Bookkeeping?

An important part of any business is the company’s bookkeeping efforts. The type of bookkeeping system you use is really up to you as long as you keeps a detailed record of all your expenses and income. In almost all cases, there are no special requirements for keeping your records. On the other hand, every…

IRS Finally Says Sorry for Seizing Small Businesses Bank Accounts

Small businesses face a tough battle in general, but when they have the IRS breathing down their necks it makes it that much more difficult to find success. Things are even more difficult when the IRS decides seize some of these business’s bank accounts. At least now the tax agency is apologizing for its actions.…