The payroll taxes you collect do not belong to your business. Under federal law, you are holding the payroll taxes “in trust” for the IRS. If you do not send the full payroll taxes to the government, you could face substantial financial penalties. Officers and other individuals who are responsible for payroll taxes for your business can also be held personally liable.
When your business is struggling, it can be difficult to keep up with payments to creditors. Late payments to the IRS, particularly with payroll taxes, put you at serious risk of losing your business or you personal assets. If you are struggling with tax debt, and need assistance dealing with the IRS, the lawyers of The Law Offices of Neil Crane, LLC, can help you. We provide clients with the advice, information and advocacy they need at every stage of their case.
100 Percent Penalty for Delinquent Payroll Taxes
The IRS can assess penalties for unpaid payroll taxes through the Trust Fund Recovery Penalty Act. Under this act, you can be penalized 100 percent of the amount of taxes you owe. This will effectively double the taxes you owe the IRS, which can cripple an already struggling business.
Responsible parties can be penalized personally for unpaid payroll taxes. Not only does this include corporate officers and business owners, this can also include accountants and bookkeepers who are responsible for withholding payroll tax.
Personal Liability and Jail Time for Unpaid Payroll Taxes
The IRS can pursue compensation to cover unpaid payroll taxes from the business. It can also hold responsible individuals personally liable. This means that the IRS can come after your personal assets and income in order to secure the taxes it is owed under the tax law.
Since the business is seen as holding the payroll taxes “in trust,” it is viewed as theft if you fail to pay the taxes to the IRS. This can result in criminal charges. Conviction can result in significant jail time.
Resolving Payroll and Trust Fund Debt Issues
The IRS will pursue the payroll taxes with the full force of the law. This can result in wage garnishment, levies and seizures of assets, and other collection actions. You need to act quickly to protect your business and personal assets.
At our firm, we have experience handling all types of complex tax debt issues. We will work diligently to develop a resolution to your debt issues. If possible, we will work to obtain an installment agreement for your business so you can pay off your debts affordably.
If your debt issues extend beyond payroll tax debt, we can help you understand all of your debt relief options. Since 1983, our firm has built a reputation for providing quality bankruptcy and debt relief services in Connecticut.
Contact Our New Haven Delinquent Taxes Attorneys
For skilled representation and trusted advice regarding your tax debt, turn to the attorneys at our firm. Call us at 203-230-2233, or contact us online for a free initial consultation. We have office locations in Hamden, New Haven, Bridgeport, Ridgefield, Waterbury and Rocky Hill.