If you own a business you are required to pay payroll taxes.  These include deductions taken directly from your employee’s paychecks as well as contributions from your business.  If you fail to submit these payroll taxes the IRS views this failure as theft from your employees.  Payroll tax problems are severe and can result in serious penalties, interest and criminal charges!

Payroll tax problems can literally close the doors on your business forever!  The IRS has what is called the 100 percent penalty.  Therefore, if you are delinquent on your payroll taxes the IRS has the right to automatically assess a penalty equal to 100% of your debt.  So if you are delinquent on $25,000 worth of payroll taxes, you can be assured that the IRS is going to assess a penalty of $25,000 making your new debt $50,000 almost instantly after becoming delinquent.

If that isn’t enough to show how devastating falling behind on your payroll taxes can be, let’s look at the next step the IRS can take in order to collect the debt.  IRS Agents can and often do physically come out to your business to seize your assets.  Payroll tax problems do not go away!

Additionally, you may not be aware of the fact that payroll tax liability becomes a personal liability. This means that anyone responsible for collecting, managing or depositing payroll tax monies can be personally held accountable for delinquent payroll taxes. When the IRS uses the term personally liable they mean they can take your home, your car, and your personal bank accounts in an effort to meet your payroll tax liability.  Payroll tax problems can close the doors on your business and destroy your personal financial life as well.

In these tough economic times many companies have found themselves faced with potentially borrowing from their payroll taxes in order to keep the business afloat.  Don’t fall victim to this temptation!  It is illegal and the IRS can and will prosecute you resulting in actual prison time penalties.

The very moment you realize you may be late or unable to meet your payroll tax debt by the enforced due dates you need to act!  Payroll tax problems only get worse as time passes.  Failing to act swiftly or choosing to ignore the problem will only cost you huge penalties, interest, and possible criminal charges.  More and more often the IRS is using the criminal courts to penalize offenders.

You should contact a tax professional to help assess what specific options are available to your unique situation.  Only a qualified tax professional can know what options you qualify to take advantage of and assist you with the process.  They can also handle the communication with the IRS on your behalf, thereby eliminating much of the fear and intimidation that so many feel when dealing with the IRS directly.  Payroll tax problems do not have to be the end of your financial life.  You need to be proactive and show the IRS that you are not evading, avoiding or in any way trying to be fraudulent.  This is crucial in order to avoid prison and the closing of your business.