Unpaid Payroll Taxes

If your business has payroll taxes that it has not paid to the IRS, then you need to act quickly. You may not be aware of the problems not paying your payroll taxes can create. By not paying your payroll taxes you have put your personal finances as well as your business at risk.

If you cannot make your Federal Tax Deposits, the IRS can force you to close your business. Even if you have not paid some previous quarters as due, pay the most current ones. As long as you start paying them now and keep current, the IRS will work with you on paying back your past due payroll taxes.

The other issue you will face with unpaid payroll taxes is that the IRS can assess those payroll taxes to your personally. The fact that your business may be a corporation does not protect you. You and anyone in your business who had signature privileges on the payroll checking account, as well as all owners and officers of the corporation can be held liable for the payment of these taxes.

If the IRS assesses the Trust Fund portion of taxes to you personally, they may be able to put a lien against your personal residence. This will damage your credit and make it difficult for you to get loans. The Trust Fund portion is the amount you withheld from your employees pay checks. You are holding this money in trust and not paying it to IRS as required is serious.

If you need assistance in handling your payroll tax debt, contact an Enrolled Agent who can represent you before the IRS and work with you in finding the best options for your situation.