The primary focus of my firm is tax representation in Parkchester, NY. A responsible person could be any employee who was in the position of making decisions involving the withholding and subsequent disbursement of the payroll tax trust fund to the IRS. A bookkeeper, sole proprietor, partner, and accounting firm are a few examples of the employees that could be made responsible simply because they have access to the payroll withholdings and the ability to effect or prevent its release. The IRS can be very aggressive in obtaining these funds because they know taxpayers not only have payroll taxes withheld, but they’ve likely already reported them via the W-2 when filing their tax returns and received income tax refunds as a result. The IRS will aggressively go after anyone deemed responsible no matter the party or income level so it’s important to defend oneself if the responsibility of turning over payroll trust funds was not in fact one’s responsibility. As well, payroll tax debt could have penalties and interest applied and cannot be discharged in bankruptcy, so it’s best to defend one’s position against responsibility is there was none.
The person held responsible according to the IRS for unpaid payroll trust fund would need to show proof that the responsibility was not their own. This could be done by having other employees of the business interviewed who could verify who had true authority in the business. They could act as witnesses in any case denying payroll tax and trust responsibilities. Also, who would have signature authority regarding the business bank account (bank signature cards) is also an indication of who truly had responsibility and control in releasing payroll trust funds. A case could to be made, but cancelled checks, testimonies, emails and any supporting documentation or information could need to be gathered in defense of denying responsibility.
If you or anyone you know who payroll tax debt issues, please feel free to contact me at (917) 708-1097 or via email at millertax.ea@gmail.com.
Miller Tax & Advisory Services
P.O. Box 967
Parkchester, NY 10462
Ph. (917) 708-1097
Comments(0)