Do you outsource all or part of your payroll responsibilities to a third-party provider? Be aware that if your provider mismanages or embezzles funds that should have been paid to the IRS, your business is responsible for the unpaid tax, interest, and penalties. Put another way, you may end up paying twice – once to the payroll provider and again to the IRS.
The National Taxpayer Advocate included this item on the list of most serious problems in the 2014 annual report. It is your responsibility it’s to be vigilant. The penalties and interest for unpaid payroll taxes can cripple or wipe out a small business. Please call us for suggestions about how you can protect your business from this type of fraud.
Written by: Doug Rodrigues