Trust Fund Recovery Penalty– A Headache for Businesses

In Probate by Vivan Ramos

Payroll tax problems are normally concerned much more seriously than other tax problems and are also identified and moved versus by the IRS much faster. When it comes to payroll tax problems it’s not simply the organisation owners or the “corporation” that can be held accountable for the back taxes.

Enlightening as to why the Internal Revenue Service takes payroll tax offenses so seriously is in the method it is worded: Payroll Tax Trust Fund.
While numerous service owners may feel they can utilize the employee’s tax loan to keep the lights on in a pinch, the easy truth of it is, that money belongs to the employees to be paid to the Internal Revenue Service and does not belong to the organisation. Included in the payroll Trust Fund is the money kept from wages for an employee’s earnings tax, Medicare tax and social security. Even more if the tax liability has not been paid in full after the sale of the businesses assets, the Internal Revenue Service will pursue the individuals held liable.

Don’t wait for this to happen hire a knowledgeable Payroll Tax Lawyer and take the first step in putting your IRS problems behind you.