It can happen so easily. You rely on someone else to handle payroll, and that person made a mistake you didn’t catch. Maybe cash flow is currently a problem, and you were faced with the difficult decision of paying rent or your employees’ income tax, social security, and Medicare taxes. While it is easy to see how you can get behind on payroll taxes, it is important to know that the IRS doesn’t care why you are behind on payroll taxes. Instead, the IRS considers payroll taxes to be “trust fund taxes” and your non-payment of payroll taxes to be theft.
Confronting Charges of Tax “Theft” When You Are Not a Thief
Your intention was not to cause anyone harm—not the government, and certainly not your valued employees. Payroll taxes, such as income tax, social security, and Medicare belong not to you, but to your employee. Your employee earned the money that is going to pay these federal taxes and, as an employer, it is your responsibility to hold these taxes in trust until you make the required payments to the federal government. Failure to make these payments is, therefore, considered theft since you have effectively (though perhaps not deliberately) kept money that has been earned by your employees and that is owed to the federal government.
Theft of trust fund taxes is a serious allegation. Typically, you have 60 days to respond to the IRS allegation, and it is important that you do so within that time. The IRS makes it very hard to avoid penalties, even if you just miss one single payroll tax payment, and will take collection efforts seriously.
Don’t Fight the IRS Alone; Call a Tulsa Tax Lawyer Today for Help
If you are behind on your payroll taxes, or have received a notice from the IRS, then the time to take action is right now. Please contact an experienced Tulsa tax attorney today at 800-721-7054, and please read our FREE book, The Ultimate Survival Guide for IRS Problems, to learn more about your rights.