Because payroll taxes owed contain employee money, the IRS sometimes views failing to pay payroll taxes more harshly that failing to pay income taxes. Punitive measures are increasingly more difficult to mitigate because payroll taxes are considered "trust funds", meaning you, as the employer hold the employee money, in trust, for remittance to the government. Not remitting your company's payroll taxes can be construed as a violation of the "trust fund" in the eyes of the IRS.
As a result, penalties for failing to pay your payroll taxes and filing your payroll tax returns on time are much more severe than other types of penalties. They can drastically multiply the amount you owe in a very short time. Civil penalties and/or criminal penalties are also allowed under existing laws.
If you are behind on paying payroll taxes for your company, please be immediately proactive.
We have experience with these type situations, so you are not forced by the government to shut down your business without the benefit of a working out a repayment plan to get back to full compliance.
If you are behind on your payroll taxes, we recommend you contact us right away. How you deal with the IRS can be as important as what you do with them. Let an experienced professional deal with your companies payroll tax problem. We have the experience and numerous case studies.
