Failing to properly file and pay taxes withheld from employees’ wages (“Trust Fund” taxes) is considered stealing and is a very serious matter. The IRS is especially aggressive when it comes to collecting on delinquent payroll taxes. Not only can the IRS go after the company’s assets but, in certain circumstances, it can also go after owners, officers, and specific employees. This means that if you are found to be willfully responsible for the business’s failure to pay payroll taxes, you could be held personally liable and face very stiff fines and possible incarceration.
The IRS will assess a penalty against individuals who are found responsible for the failure of the business to remit payroll taxes. This penalty is called the Trust Fund Recovery Penalty because it imposes a fine that is equal to the portion of the payroll taxes that was withheld from employees’ pay and held in trust for the government. The IRS often assesses the Trust Fund Recovery Penalty against people within the organization who were neither shareholders nor officers, but are found willfully responsible. Also the Trust Fund Penalty may be assessed against more than one individual.
The IRS will first make an investigation and, assuming it makes an assessment against you or other employees of your company, it can then begin collection efforts aimed at your personal assets. This would include bank accounts, property, and other items of value. In some cases, the IRS may liquidate the company and sell its assets in order to satisfy the tax debt, meaning they can and will shut down your business to satisfy your tax problems.
If the IRS has already begun action against you for unpaid payroll taxes, you need expert representation immediately. If you wait too long, not only will your penalties multiply, the IRS will take increasingly more aggressive steps to collect, including holding you personally liable for the debt, leaving you open for civil or criminal prosecution.
Our tax professionals have extensive experience dealing with unpaid employment taxes, and will use their expertise to negotiate with the IRS on your behalf. A quickly negotiated acceptable agreement will ensure that you do not lose your business and will result in your personal assets, wages, and bank accounts remaining intact. US Tax Shield has even successfully negotiated Offers in Compromise for unpaid payroll taxes.
You Have a Right to Tax Representation
If you have been contacted by the IRS or your state’s Department of Taxation, or have received tax liens, levies, or notices of IRS intention to do so, call 877-829-3535 today for your free 15 minute tax analysis and consultation.