Behind on Payroll Tax
If you are behind on paying Payroll Taxes for your company, the IRS will adopt aggressive methods of pursuing tax collection. The IRS uses enforced collection to recover the tax liability (Payroll Tax) owed by the company or the individual.
The Internal Revenue Code authorizes IRS Enforced Collection for delinquent taxes, which can include a levy on the assets of the business, including accounts receivable, equipment, automobiles and the bank account. The IRS can also close a business for non-payment of payroll taxes.
In such situation where the business is closed or files for bankruptcy protection, the IRS will turn to the owner of the business for collecting the penalties, interest, taxes and trust funds. In case of a corporation or a partnership, the IRS will hold the person responsible for paying the payroll taxes to collect the trust funds. The liability may be imposed on more than one individual, but the total amount of the penalty would only be collected once. This is known as the Trust Fund Recovery Penalty.
Contact us for more information or call us in our Doral, FL office at Call 305-500-9361 today!