I focus my practice on tax resolution, representing taxpayers in Colorado, Florida, and across the United States. As a business owner, it is your responsibility to make sure that you are paying your payroll taxes on time and in full. Failure to do so can have serious consequences, including fines, penalties, and even jail time.
If your business fails to pay payroll taxes, the IRS can take legal action to collect the money owed. Penalties and interest will continue to accrue on the outstanding amount until it is paid in full. However, if the IRS determines that the failure to pay is due to willful neglect or fraud, they may pursue criminal charges against you and your business.
If found guilty of willful failure to pay payroll taxes, business owners can face significant fines and jail time. The maximum penalty for willful failure to pay payroll taxes is a $10,000 fine and up to five years in prison. The IRS has a dedicated Criminal Investigations division that investigates and prosecutes tax-related crimes, including failure to pay payroll taxes.
It's important to note that criminal charges for failure to pay payroll taxes are rare and are typically reserved for cases of extreme negligence or intentional fraud. In most cases, the IRS will work with business owners to set up a payment plan or negotiate a settlement.
Failure to pay payroll taxes can have severe consequences, including fines, penalties, and even jail time. As a business owner, it's your responsibility to ensure that your payroll taxes are paid on time and in full. If you are struggling to make your payroll tax payments, it's crucial to seek professional help and work with the IRS to resolve the issue.