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, 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…
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.
Have a Tax Issue With the IRS? You Could Always Take Them to Court
What would you do if the IRS makes a decision you don’t agree with? For example, let’s say you file a tax return and send it in expecting to receive a refund of $1,500. However, a few weeks later, instead of receiving your refund, you get a letter in the mail informing you that you…
Will Fewer Audits Lead to More Cheating?
There’s an old saying that cheaters never prosper. Of course, there are probably many people who have gotten away with cheating that would beg to differ. When it comes to taxes, however, it’s always best to avoid cheating. Surely, some people do get away with it, but if you ever get caught it could cost…
Could a Trust Be a Good Way for the Wealthy to Save on Taxes?
When you think of trusts, what comes to mind? While many people think of a financial account that is set up as part of an estate plan, there are a couple of little-known trusts that taxpayers, especially the wealthy, can use to help them save on their tax bill. These trusts are perfectly legal and…
How to Avoid Tax Preparation Scams
With so much to do and so many other important things to worry about, many people will be looking for help over the coming weeks and months with their income tax returns. While some people might just choose the first name they see to file their taxes, whom you choose can actually make a big…