Unpaid Payroll Taxes-Taxpayer Rights
- Martha De la chaussee
- 27 mar 2019
- 2 Min. de lectura
Unpaid Payroll Taxes-Taxpayer Rights
Written By: Martha De la chaussee
Payroll Tax Debt Expert
Employers who have report workers as independent contractors should be aware that the Internal Revenue Service and Employment Development Department take enforcement actions to compel companies from not paying their share of payroll taxes and tax withholding reporting and paying for employees.
Misclassification of workers as independent contractors instead of employees will cause a payroll tax audit that can cost a business its financial future. With not only the payroll tax withholdings, social security taxes, Medicare taxes, penalties and interest included.
Furthermore, these companies will most likely incur tax representation fees for a Tax Attorney, CPA or Enrolled Agent to assist them with the payroll tax audit process and tax debt collection resolution. It can get more expensive than if these same companies followed the payroll tax rules, processes and procedures.
Not only are these businesses risking their financial future. The sole proprietors risk their personal assets. Officers, Members, Partners and other individuals in charge of the financial decisions for a business can also be held personally liable for unpaid payroll tax debt via the Internal Revenue Code 6672.
No bankruptcy discharge is available for unpaid payroll tax debt for individuals or entities. Even non-profits place themselves at risk of losing all assets and closure of a business when it comes to unpaid payroll taxes.
Taxpayer rights are as follows:
The Right to Be Informed The Right to Quality Service The Right to Pay No More than the Correct Amount of Tax The Right to Challenge the IRS’s Position and Be Heard The Right to Appeal an IRS Decision in an Independent Forum The Right to Finality The Right to Privacy The Right to Confidentiality.
The Right to Retain Representation The Right to a Fair and Just Tax System
However, these do not mean that with audits a company only pays the amount that they believe is correct. The correct amount of tax is according to the misclassified workers identified by IRS or EDD. Additional penalties and interest.
Furthermore, calculations that are according to the tax agencies procedures for calculating tax withholding, social security and other taxes accordingly.
The consequences in these types of cases include fraud penalties and potential criminal prosecution for unpaid payroll tax debts. If you do not believe me. Go to the IRS website and search criminal prosecutions for 2018 and 2019.
Yes, companies and individuals have taxpayer rights. However, you must decide if not following the payroll tax procedures, rules and regulations is worth it.
For free resources and additional information go to www.irs.gov or www.advocatetaxgroup.com
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