Employers in the US are obligated to withhold payroll taxes from an employees’ paycheck. These taxes withheld include social security tax, Medicare tax, federal income tax as well as unemployment taxes. In addition to these taxes most states require that state taxes be withheld as well. Most Payroll tax problems occur when an employer does not fully understand the procedures required when handling payroll taxes.
The IRS requires business owners to turn over the taxes they withhold from employee paychecks in a timely manner. The IRS holds those funds in a trust which in turn means that the employer is actually a trustee for the United States. As such, the business owner must properly report and turn over all withheld taxes. If you do not it is considered theft of government funds.
The IRS can and usually will assess penalties against those business owners who fail to send the government the payroll taxes they withhold from their employees. The penalty is called a Trust Fund Penalty and it imposes a fine up to equal to the amount of the payroll taxes withheld from employees that the government would have held in trust.
Failing to file payroll taxes withheld is a very serious matter that can lead to action against the company and its assets as well as the business owner and even its officers or certain employees
Our licensed and enrolled tax agents have many years of experience dealing with the IRS and understand how to handle any tax problem you may have including payroll tax problems. There are various solutions to this problem including but not limited to setting up an installment payment agreement. Determining the best course of action to take to fix your payroll tax problems with the IRS is what our friendly, professional agents specialize in. Act today! Call toll free 1-866-499-1156 Mon-Fri 6am-6pm to speak to one of our professional tax experts and get a FREE evaluation so we can better serve your tax relief needs.
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