Back Payroll Taxes
For a lot of small business faced with shrinking margins and slow paying customers the temptation to use moneys withheld from employees begins to be too much. When faced with making this week’s payroll, this month’s rent, or last month’s vendor payments the business opts to use the payroll taxes withheld as a loan to get them through a tough time. When this happens the IRS becomes an unwilling lender to the business and gets extremely upset and makes collection of these debts job one.
If your business is facing a back payroll tax debt the most important thing you can do is not ignore the problem. If the business is being forced to “dip” into these monies to fund ongoing business obligations there is a very serious problem and it must be addressed quickly or the business faces immediate enforcement actions from the IRS.
The most important thing the business can do is “stop the bleeding” by making current Federal Tax Deposits on time and in full as well catch up on any missing tax return filings. If the business is not current and compliant there will be no working out any arrangement with the IRS. If the business cannot begin making the Federal Tax Deposits then a aggressive approach needs to be taken like a Corporate Restructure.
The IRS will also pursue the individual owners and officers of the corporation or Limited Liability Company for the Trust Fund Recovery Penalty by which they can enforce collection on these individual’s income and assets.
Take the Next Step
Whatever your tax needs are big or small I invite you to call me at (303) 376-6267, complete the “Contact Me” form below, or email me at john@cotaxattorney.com