News / Article
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5 Year Prison Terms Over Payroll Taxes Warn Employers About IRS Source: forbes.com - Jul 25, 2017 The IRS can be tough on collecting income taxes, and even tougher where payroll taxes are concerned. The money is withheld from employee wages, and is supposed to be paid over to the IRS. If the IRS doesn’t get it, the losses can mount quickly. Payroll taxes are withheld from wages and are to be promptly paid to the government. This is trust fund money that belongs to the government, and no matter how good a reason the employer has for using the money for something else, the IRS is strict. The IRS can target the owners of the business, plus check signers and other responsible persons who had a role--or could have had a role--in the failures to pay. Sometimes, the IRS even goes after third parties, even criminally. If convicted, the sentence can often be five years in prison. Category: General Business |
