Responding to Federal and State Payroll Tax Accusations
If you have been accused of failing to file or pay withholding federal or state payroll taxes from your employees, you should not hesitate to contact an attorney about this very serious situation.
At Bredemann & McFarlane in Scottsdale, Arizona, we help clients throughout the United States respond to reviews and assessments by the IRS, as well as Arizona taxpayers in their tax matters. Contact us to speak to one of our knowledgeable and experienced tax attorneys.
Understanding the Seriousness of Payroll Tax Disputes
Employers in the United States are required to collect W-4 forms and use the information provided to withhold payroll taxes from employees' paychecks. Employers may be tempted to use the withheld funds to cover immediate business needs.
If you fail to file your employment tax return or fail to make your payroll tax payment on time, you could find yourself in very serious trouble with the IRS and/or state tax authorities. The IRS can assess and seek collection from "responsible persons," personally, in their individual capacity, who willfully fail to pay employment taxes. When the IRS or ADOR questions your employment tax filings or payments, Contact us. Professional assistance is advised.
Protecting Your Assets From Collection Actions of the IRS or ADOR
Normally, when you own a business that is organized as a corporation, a limited liability company (LLC) or other limited liability entity, the government or a private party bringing a lawsuit against you personally must satisfy very stringent legal criteria to "pierce the veil" and go after your personal assets.
When it comes to failure to pay payroll taxes, however, the IRS may assert the tax liability against the business owners and anyone else who has sufficient control over the tax payment process personally. This is called the 100 percent penalty or the trust fund recovery penalty.
If you are being threatened with this very serious consequence, it is extremely important for you to contact an experienced tax lawyer right away. Bredemann & McFarlane have handled many of these cases. We can help you explore your options for rectifying unpaid payroll taxes or contesting the tax authorities' claims.
