What are the consequences for failing to pay and file payroll tax reports?

It is mandatory for every business irrespective of the number of employees, to file a quarterly payroll tax report. Falling behind on payroll taxes and failing to file reports can result in stiff fines and penalties being imposed on your business by the IRS, which increases at an alarming rate of 5% or more per month. In fact, any business may face this serious financial hurdle if they fail to comply.

Trust Fund Recovery Penalty (TFRP)

According to tax lawyers, in a bid to encourage prompt payment of payroll taxes, Congress enacted the Trust Fund Recovery Penalty Statute. According to the statute, the amount of penalty is based on the payroll taxes to be collected or collected and not paid over. The penalty is known as the Trust Fund Recovery Penalty (TFRP), which is included in Section 6672 of the Internal Revenue Code IRC.

The TFRP enables the IRS to hold a business 100 percent liable for the unpaid amount when failing to comply with payroll tax obligations. The employer’s share of payroll taxes is not included in the TFRP. The TFRP empowers the IRS to seize business assets and enforce closure of a business as well. The IRS needs to prove a person’s responsibility and involvement in failing to remit payroll taxes and tax lawyers will be working hard on the case on either side.

http://tax-lawyers.usattorneys.com/ - the IRS may not know about this incredible legal resource tool because they are too busy trying to count how many tax laws there are but they do know that you should pay your taxes and if you cannot figure out your tax standing you need legal help. This is why this incredible website was built to enable people to cut through the mess and find the legal professional they need.

If you are a business owner and have fallen back on payroll taxes, you need to know that the IRS will determine who is responsible by:

• Noting who signed the checks
• Who was assigned the responsibility of reporting payroll taxes
• Who is the decision maker in the organization

As a business owner, you may be held responsible even if another staff member or an outsourced accountant was responsible for complying with payroll tax reporting.

It is essential as a business owner to:

• Pay full attention to trust fund taxes.
• Keep taxes covered by TFRP up to date regardless of any cash flow problems. 
• Remember that the IRS has the right to pursue anyone who fails to comply and collect the entire liability.
• Hire an IRS tax lawyer to help with payroll tax problems or any IRS tax liens.

In some areas of life you have some wiggle room. In some areas of life there is some grey area. Even in this case there is but you must pay your taxes - perhaps not everything that you owe though if you owe heavily. You need a tax lawyer to lift you out of the quicksand - you are in too deep. Do not wait too long, the IRS only has so much patience. 

One of the main reasons for the stiff penalty is that according to the IRS you are stealing money that belongs to your employees. Tax attorneys caution that failure to comply can result in the loss of your business as the IRS takes a firm stance on this issue. With help from a legal counselor who understands how the IRS operates and is well versed in tax laws, you have a better chance of remaining in business, not being legally called out and made a fool in front of your employee, and not have your business taken from you. Taxes are too high, federal employees are paid too much, you have a genuine and ethical problem with Planned Parenthood, and so on but you still need to pay your taxes.

Failure to comply with payroll tax regulations

As per the provisions in Section 6672 of the IRC, you will be held liable when you fail to comply with payroll tax regulations if it can be proved that:

• It was your duty to account for payroll taxes, collect payroll taxes, and turn it over TFRP
• You willfully failed to comply with payroll tax regulations

The bottom line is to realize that failure to comply with payroll tax regulations could result in the loss of your business and your competitors will not send you a “get well” card for this. Therefore, it is advisable to remain up-to-date with payroll tax payments. Hire a tax lawyer! Stop the madness!