IRS Business Delinquent Payroll Taxes Consequences


Being a small business owner is a liberating experience. But with the freedom, comes responsibility. It’s imperative to pay the IRS on time. You must make Business Payroll Taxes a priority. Many are not aware of it, but this can make or break your Small Business. It’s important to know the consequences of being Delinquent on Business Payroll Taxes so you don’t make a deadly mistake with your Business finances.

When you neglect to pay Business Payroll Taxes on time you will receive a warning from the IRS. If the issue is not resolved in a timely manner, there are several consequences that can become reality:

  • The IRS imposes a very harsh Penalty when Business Payroll Taxes are not paid. The penalty is 100% of the Taxes owed. This is called “Trust Fund Recovery.” Remember, when your Payroll Tax obligations are not met you are breaking a binding contract you have with the United States Government.
  • IRC Section 6672(a) states that the blame for not paying Business Payroll Taxes goes to “every responsible person” who willfully neglected to pay the payroll taxes. This means Accountants, Bookkeepers, and anyone with check signing ability can get the blame for the tax debt.
  • Even if there was no bad motive involved, the expensive “Trust Fund Recovery” penalty is imposed. For example, some Business owners fail to pay their Payroll Taxes out of desperation. They may have been trying to save the company from Bankruptcy or protect their employees. But the reasons why you are delinquent are irrelevant; penalties and debt will still be imposed.

According to the IRS’s official website thousands of taxpayers have outstanding Trust Fund Recovery penalties as a consequence of being delinquent on Business Payroll Taxes. The amount of money is in the billions and it is still growing. You do not want to be another number in this equation. Take care of your IRS Tax issues as soon as possible. Contact us for a free tax analysis with no obligation.

Business Tax Solutions and Topics

Business Tax Relief
Does your business owe taxes that it cannot pay? Connect with a tax professional to help resolve IRS and State business tax problems.

IRS Trust Fund Recovery Penalty
An overview of the trust fund recovery penalty (TFRP). Understand the consequences of not paying payroll taxes, who can be held responsible and how to handle being penalized by this penalty.

How to Resolve Business Payroll Taxes
Resolving the issues that arise from being delinquent on Business Payroll Taxes is no easy task. Know what your options are to resolve unpaid payroll taxes to prevent tax penalties from adding up.

Common Small Business Tax Problems
Owning a small business is exhilaratingly, however there are many tax problems small business that commonly run into. Here is an overview of various tax problems small businesses encounter as well as solutions to them.

Benefits of Using a Tax Professional to Help with Taxes
Tax codes are very complex, many businesses and individuals get into trouble with the IRS simply because of lack of knowledge of the rules. Using a tax professional saves time and money in the long run.