IRS Focuses on Payroll Taxes

IRS Revenue Officers are continuing to focus on the payroll taxes that employers are required to both file and remit to the IRS on a regular basis. The IRS has determined that getting employers to pay these taxes is relatively easy money and the longer that a business goes not paying these taxes the more likely they will default and the IRS will never get the money. However the government will have to still cover the Medicare, Social Security and income tax withholding for the employees.

For the business owner the risk is that the IRS will go after them personally for the “Trust Fund” taxes and assess an penalty of 100% on those funds. The Trust Fund is the employee’s income tax withholding and their half of the FICA tax. The owner(s) can’t escape this via bankruptcy or by closing down the business.

If you are in this situation or know someone who is give us a call, we can help.