Harrison Tax Resolution - Payroll Tax Issues - Phoenix, AZ
Harrison Tax Resolution  - Tax Settlements, Audit Defense, Tax Debt Relief, Tax Resolution
Audit defense.  Reduce tax assessments.  Tax debt relief.
Employee Trust Funds
Federal Income Tax
Social Security
Form W-4
Payroll Tax Issues
When an employer hires employees and pays them wages and salaries, the law requires that the employer withhold certain taxes from their payment.   These taxes are required to be deposited on behalf of the employee into a federal reserve bank authorized to receive these funds on behalf of the government.  Deposits can also be made to the IRS electronically.  These IRS Payroll Taxes must be paid on a quarterly basis: March, June, September and December.  Under certain circumstances, some small businesses may be eligible to file these taxes on an annual basis.  These funds do not belong to the employer and are held in "trust".  They are commonly referred to as "trust funds".  These funds belong to the United States and do not merely represent a debt of the employer.   If the taxes are not paid over to the IRS, personal liability will be imposed on the individual (s) who was responsible for withholding these taxes and paying these funds over to the government.  If the individual or individuals responsible willfully failed to collect, account for, and pay over the withholding taxes, a "trust fund recovery penalty"may be assessed by IRS on the individual(s) responsible.  Liability may be imposed on more than one individual, but the total amount of the penalty would only be collected once. 
No Protection from Liability
Whether the business is closed, files for bankruptcy protection, or continues to operate, the IRS may look to the owners, officers, and even the employees of the business in order to collect the unpaid payroll tax liability.  The IRS will attempt to collect first from the company and if the company does not have funds with which to pay the amount owed, the IRS will look to the responsible individuals. 
IRS Levies
Examples of what IRS will levy and/or seize:
  • assets of the business
  • income sources
  • accounts receivable
  • equipment
  • automobiles
  • bank accounts
  • merchant accounts
The IRS may shut down the business  Aggressive Collection Action Not only is your business at risk, but you could be personally liable for any or all IRS Payroll Taxes owed.  If the IRS determines the business cannot pay its past due taxes, they will then focus on any individual or individuals who the IRS deems as responsible.