The IRS has a new program that will allow them to get a jump start on businesses that miss payroll tax deposits.
Using this new payroll tax initiative, the Service will notify a business by mail when its records show that the firm’s payroll tax deposits have declined. The employer will be asked for an explanation of the decrease.
If the business has missed deposits, the IRS will pursue collection of the unpaid amounts. The more-complicated cases, such as those businesses with preexisting delinquencies, will be handled by field officers.
The typical defense for non-payment of payroll taxes has been limited financial authority,
This will no longer help a co-owner beat a payroll tax bill, according to the federal court.
Two shareholders, who owned equal stakes in a corporation, agreed that the president would handle the firm’s finances while the vice president would take care of field operations. But the VP still had the authority to sign checks, and did sign checks to creditors, even though he was aware the firm owed payroll taxes. That made him liable for the payroll tax deficiency