THE IRS IS SERIOUS WHEN IT COMES TO BUSINESS TAXES. The IRS aggressively pursues past-due payroll taxes and other taxes owned by businesses. Business owners could even face personal liability for their failure to withhold or pay these taxes, and once businesses receive notice of a failure to pay, it can be difficult to avoid steep penalties. If you’re concerned about your Texas company’s business or payroll tax liability, get help now to avoid a serious problem down the line. Contact the effective and dedicated Tyler & Dallas payroll tax attorneys at the Scammahorn Law Firm to discuss your business tax concerns.
The IRS views employers as acting as trustees of the payroll taxes they collect from their employees. When federal taxes are withheld from workers’ paychecks for things like Social Security and federal income taxes, they’re known as “trust fund” taxes and should be held in trust by the employer. If the employer fails to submit these taxes to the IRS or uses the funds for other purposes—even legitimate business expenses—the employer could face serious liability in the form of penalties and restitution of back taxes.
The IRS can pursue claims against any “responsible person” within the organization that has failed to make its payroll taxes. In other words, any person responsible for submitting payroll taxes to the IRS who failed to do so could face a trust fund recovery penalty and, in some cases, prison time, in addition to paying the back taxes. A “responsible person” could be a sole proprietor, partner, officer, corporate director, LLC member, or in some cases, even an employee. That said, the IRS must still prove that the “responsible person” being targeted for past-due payroll taxes and trust fund recovery penalties willfully chose not to collect or submit payroll taxes. In many cases the Revenue Officer will refer the case to the Criminal Investigations Division (CID), for potential prosecution of the owners and/or officers. That means the owner or officer could have his or her personal bank accounts, wages, or assets seized by the Internal Revenue Service.
Don’t assume that by hiring a payroll company your payroll taxes are handled. The employer or owner of a business is ultimately responsible for the payment of trust fund taxes, whether or not they choose to personally handle collection or submission of those taxes. Owners are held responsible for checking that payroll companies are doing their job correctly and submitting these taxes. In rare cases, payroll companies have even been found to keep funds collected as payroll taxes, for which employers could be held responsible. In such cases, employers being pursued by the IRS should find experienced and reliable legal counsel in defending against steep penalties or criminal charges.
If you are an owner or officer of a business and are facing tax problems, call the Scammahorn Law Firm immediately. Do not speak to any IRS agent or representative, as this may seriously damage your case. Do not be fooled by seemingly friendly IRS agents. They are attempting to extract as much information from you as possible to use that information against both you and the business.
The Scammahorn Law Firm will diagnose the problem, play defense to prevent the IRS from levying business accounts and assets, and attempt to protect you, the owner of the business from personal liability by exercising your rights under the law. The Internal Revenue Service is becoming more and more aggressive against small business owners. Do not let the IRS levy your bank accounts or seize your property. Contact a Dallas & Tyler tax resolution attorney today to handle your back tax issues in Tyler, Longview, Marshall, Dallas, Plano, Fort Worth, Odessa, and all over the State of Texas. Contact the Tyler & Dallas business tax attorneys at Scammahorn Law Firm today at 903-595-1000 for IRS and tax resolution and put your tax problems behind you for good.
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