Falling behind on payroll tax deposits or filings can jeopardize the continued existence of your business. In a relatively short period of time, the penalties assessed on overdue payroll tax deposits can mushroom.
IRS payroll tax problems occur when you withhold taxes from your employees and spend them.
IRS payroll tax problems occur when you treat employees as contract labor and after an IRS audit it is discovered that those contract labor are classified as employees.
IRS payroll taxes could be repaid back to the IRS via an installment agreement.
IRS payroll taxes could be settled with the IRS via the submission of an Offer in Compromise.
Treating Employees as contract Labor
if your client treats his/her employees as contract labor and gets audited..... is an employee or contract labor as follow:
Revenue Ruling 87-41, 1987-1 Cumulative Bulletin 296, lists the twenty factors that have been identified to serve as an aid when determining whether an individual is an independent contractor or an employee.
1 - Instructions
........ failure to complete it.
Trust Fund Recovery Penalty
If your client is an officer of a corporation or has authority to sign checks, or has the authority to make a decision on who gets paid or who doesn't, he/she can be held liable for taxes withheld. Only the portion of the taxes withheld such as ..... held liable!
The Revenue Officer, Collection Division of the IRS, will be involved. The Revenue Officer will meet with your client and will conduct an interview to determine the responsible individual.
The interview is conducted via Form ...........
If your client is found liable, but is unable to pay the taxes, ........
To be continued in members only section!
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