The Internal Revenue Service (IRS) can be dogged in its efforts to collect income tax. Some recent news is the agency can be even more focused on getting its due when it comes to payroll taxes. While the statute of limitations gives the IRS three years for an assessment and audit, it can still come after a business for up to six years. In one rare case, the IRS went back three decades to collect delinquent payroll taxes. Click here to watch or read more information on IRS Back Taxes.
Even if a person never signs off on a payroll check, that party can still be considered a responsible person in regard to a company. A board member, and partial or full owners of a company, can also be held liable if the company’s payroll taxes are not paid. Criminal charges and the loss of the business is possible in some scenarios, which is nearly impossible to recover from.
Payroll services are used by nearly half of all businesses, which necessitates paying close attention to performance due to the increasing incidence of payroll tax theft. A good way to avoid this situation is by hiring in-house payroll staff that is required to keep a close accounting of how the money is used.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney