Owe Payroll Tax

Payroll Tax Problems
Payroll taxes are considered to be a trust fund tax. As a result, payroll tax problems are among the leading causes that can aggravate the IRS and prompt an investigation into your business.
When an employer pays wages and salaries to employees, the law requires the employer to withhold FICA and income taxes but does not specifically require the employer to segregate the withheld amounts from other funds. The amounts designated as being withheld are simply deemed to be held in trust for the United States. These funds are commonly referred to as trust fund taxes. They 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 those individuals who were responsible for, but willfully failed to collect, account for, and pay over the withholding taxes. The IRS determines this personal liability in part by interviewing individuals, including shareholders, officers, and directors of the corporation. The "trust fund recovery penalty" will be assessed against the parties deemed responsible for an amount equal to the unpaid withholding taxes. Liability may be imposed on more than one individual, but the total amount of the penalty would only be collected once.
If a business has employees but has failed to pay payroll taxes or file payroll tax returns, the IRS may levy assets of the business, including income sources, accounts receivables, equipment, automobiles, and bank accounts, and may even shut down the business.
Whether the business is closed, files for bankruptcy protection, or continues to operate, the IRS may look to the owners, officers, and even employees of the business to collect the unpaid payroll liabilities. These individuals may be held personally liable for debt owed by the business because of the special nature of these taxes.
If you have payroll tax problems, do not try to take on your matters by yourself. Too much is on the line for you to risk losing your business to the IRS. If you wish to resolve your payroll taxes and avoid penalties imposed by the IRS, contact Jared Tax Services immediately.