RONALD J. CAPPUCCIO, JD, LLM (TAX)


TAX, BUSINESS AND ESTATE ATTORNEY

QUESTIONS
856.665.2121

Unpaid 941 Payroll and Employment Taxes - Civil Penalty

Unpaid 941 Payroll & Employment Taxes

In this struggling economy, sometimes your business cannot pay all its bills. The business may have used its credit lines and other sources of ready cash. Because money and cash flow are tight, businesses frequently cannot pay the 941 employment taxes. This can be a disaster for the business and the officers and shareholders!

Personal Liability for 941 Taxes

941 taxes include the amounts withheld from employees and the additional amount the business owes for Social Security and Medicare. Because the IRS views the business as holding the taxes intrust for the government, these withheld taxes are called"Trust Fund Taxes." The IRS tries to collect the money from the business AND officers and check signers known as"Responsible Persons." If the business cannot pay the taxes right away, the IRS goes hunting to collect the back taxes from the officers and owners directly!

 

IRS Closes Down Businesses!

If a business does not pay 941 taxes for 3 or more quarters, the IRS calls this"Pyramiding." The IRS will levy against business bank accounts and customers that owe the business money. Sometimes, the IRS will come in and shut the doors!

You need a Tax Lawyer Right Away

If your business owes back 941 taxes, contact a tax lawyer right away. Do not talk directly with the IRS Revenue Officer because the IRS is trying to hold you personally and individually liable. Let your tax lawyer fight the IRS for you to keep your business open.