Does Your Business Have A Payroll Tax Problem?

Charleston, West Virginia IRS & Tax Attorney, Jeffrey T. Jones Discusses Why You Must End Your Payroll Tax Problem Today Or…The IRS Could Shut Your Business Down! 

Owing the IRS isn’t like owing a credit card company or even a bank. They have special powers granted to them by the U.S. Government to literally reach into your bank account and take your money. They can also take your real estate, social security benefits, 401(k)’s, IRA’s, cars, boats, houses, accounts receivable, cash loan value of your life insurance...even commissions owed to you, all just to satisfy a tax debt. And in the case of tax evasion or fraud, they can even put you in jail.

But you must understand – there’s a MAJOR difference between not paying personal taxes and not paying payroll taxes:

• The IRS can padlock the front doors of your business without a court order.
• Payroll taxes CANNOT be discharged in bankruptcy.
• Owners, partners, corporate officers are held PERSONALLY liable for unpaid payroll taxes.
• The IRS can seize your PERSONAL assets to satisfy a payroll tax debt.
• Not paying your payroll taxes COULD be considered a Federal Crime if the IRS can prove you willfully didn’t file or didn’t pay.

In some cases the IRS would rather shut your business down and liquidate your assets than give you the opportunity to NOT pay even more payroll taxes. Are you starting to see what a big deal this is? If you are considered “responsible” for paying payroll taxes for your company and you don’t pay them, the IRS will eventually assess the Trust Fund Recovery Penalty (TFRP) against you. 

But for now, let this sink in: if you’re found to be a “responsible person”, you could be held PERSONALLY liable for payroll taxes! So the #1 question you need to ask yourself is...

Would The IRS Consider Me “Responsible?”

It could be as simple as answering this question: “Have you ever signed a payroll check?” If so, chances are good you’re on the hook. However it may not be as cut and dry as this. The IRS has two major tests to determine if you are a “responsible person”: 

1) Whether the party against whom the Trust Fund Recovery Penalty is proposed had the duty to account for, collect, and pay over payroll taxes; and

2) Whether he or she willfully failed to perform this duty.

As you can see, this is a pretty vague test. Because of this, the IRS has their work cut out for them trying to determine who is “responsible” for not paying payroll taxes. There’s usually no “cut and dry” answer (in some cases, even the offending company’s CPA’s and lawyers have been held liable)!

If your company is having a payroll tax problem, and you’re unsure if you could personally be held liable by the IRS in this situation, call me. There’s no sense losing sleep at night, not knowing if the IRS is going to come after you. Besides, you owe it to yourself and your family to be protected from the IRS! 

About Jeffrey T. Jones:

Jeffrey T. Jones is an attorney in Charleston, West Virginia. He is licensed to practice in the State and Federal Courts of West Virginia and in the State of North Carolina. He is a graduate of the West Virginia University College of Law.

He is past President of the West Virginia Association for Justice and has been honored as Member of the Year. He has also been recognized as one of the Top 100 Trial Lawyers in West Virginia. He has appeared in USA TODAY as an Emerging Business Leader To Watch.

In his work, he helps individuals and businesses solve their IRS problems. He is the author of the bestselling book “Protect and Defend.” He has also written Special Reports dealing with business payroll taxes and ways to solve your IRS problems.

To learn more about Jeff or to order his book, or Special Reports, go to http://www.jeffreytjones.com/ or call 1-800-247-2845 or 304-345-3400.