Unpaid taxes and its Consequences on the Company
When a business refuses to pay the taxes that it has collected from its employees as employment taxes, the consequences would be quite heavy and stringent. Employment tax is a tax that has been collected from the employee’s hard earned wages in order to pay under the tax code. When the company fails to pay this collected amount of tax then the IRS would take heavy actions over the company. It would also hold those person involved in this wilfully as responsible for this and would require them to pay the amount instead of holding it over the company. The IRS is so strict with this mainly because the company is actually taking away other people’s money, that too from the employee’s wages.
The employment tax would cover various areas and this includes,
- Federal Income tax
- Social Security and Medicare or FICA Taxes
- Additional Medicare Tax and others
For unpaid payroll taxes, the IRS holds concerned individual as responsible like the Corporate director or shareholder, officer or employee of corporation, member of employee of partnership and others. It would then go on to add Trust Fund Recovery Penalty and tries to collect the taxes from the business first. It would also require the necessary documents to be submitted by the concerned individual.
Choose a professional service
Many companies would be totally clueless as to how to move about the whole procedure and the federal agency requires on to employ a proper authority for the purpose. It is important to choose a smart tax attorney who is well aware of the process and would lend all the professional support and guidance in this regard. There are plenty of services out there but few like taxreliefprofessional.com provides for excellent support on various levels. Click here to know more about it.