When cash flow is tight, you may be tempted to pay your suppliers first and your payroll taxes last. Not only are the penalties for late payment of tax deposits sufficient to discourage this but the IRS will take steps to minimize the liability as quickly as possible. They also have an additional powerful weapon available to collect such taxes. Whether or not you own the company, you could be determined to be a “responsible person” held personally liable for 100% of any payroll tax deficiency.
Please call the office for further information.
Written by: Doug Rodrigues