Relief from Payroll Tax Penalties
If you fail to remit payroll taxes to the taxing authorities, then you or others in your business may be subject to penalties and fines.
A Trust Fund Recovery penalty equivalent to the amount of the unfiled payroll taxes can be imposed by the IRS against the individuals responsible for failing to pay the trust funds. The IRS considers any person who can sign a company check to be a “responsible person” subject to the penalty. This puts in jeopardy the homes, cars, investments and other assets of company officers and responsible employees. Trust Fund Recovery penalties can be imposed if you misclassify workers as independent contractors instead of employees. If a local Revenue Officer is unable to collect the payroll taxes, then your business can be closed and the assets liquidated.
The IRS can assess the business a Failure to Deposit penalty of up to 15% of the amount due.
The IRS can assess penalties for late payments.
In certain cases, the IRS will criminally prosecute responsible individuals that willfully fail to file payroll tax returns.
Trust fund issues are serious. Trust Kresch Tax Resolution Services to help you with your trust fund problems.