What could be more dangerous to your business than an IRS audit in San Diego? The failure to accurately collect and submit payroll related taxes and deductions may genuinely challenge more local small and mid-sized businesses than an IRS audit. If you have employees, your company is required to withhold taxes for Medicare and Social Security, known as “trust fund” taxes. In these cases a trust fund must be established by an employer on behalf of the employees to collect and submit the trust fund taxes. The company is the “grantor,” the employees are the “beneficiaries” and the employer or management professional acts as the “trustee” who manages the collection and payment of the assets within the trust fund.
Small business owners are often tempted by the need to pay basic (survival level) obligations such as rent or the employees wages themselves. Many find themselves in trouble when the IRS audits the trust fund and begins to issue trust fund penalties, levies and liens against the business as well as the principles and managers responsible for collecting and paying the trust fund taxes. This personal liability extends not only to the owners or officers of the company, but any manager with signatory authority over company payroll accounts or trusts. The IRS considers this money to be a high priority and will take extremely aggressive collection actions to recover it.
Trust fund audits and payroll tax issues with the IRS will not only threaten the very life of your company, but expose business owners and managers to the genuine possibility of prosecution and jail for fraud. The experienced business law and tax attorneys at Allen Barron provide extensive services to protect you and your company. We represent you before the IRS and work to find genuine opportunities to resolve trust fund related issues while preserving the underlying business. The IRS wants their money and we develop a strategy to ensure they receive it while ensuring that immediate steps are taken to prevent recurring issues in the future.
What is more dangerous to your business than an IRS audit in San Diego? A trust fund audit. It can threaten the life of your business, your financial well-being and in some cases your very liberty. We invite you to contact us for a free consultation at 866-631-3470.