In a challenging economy in the United States and specifically in the state of California, a multitude of small to mid-sized companies have found themselves in a fiscal crisis as accounts dry up and clients cut back on spending. During such an economic crunch, payrolls still have to be paid and the cost of doing business still has to be covered. In light of such month-to-month responsibilities, many business owners find themselves dipping into the trust fund portion of their employee’s paychecks, proverbially stealing from Peter to pay Paul.
In light of the 100% Trust Fund Recovery Penalty and the severity of IRS payroll tax payment monitoring and retribution, such foolish survival instincts often lead directly to the downfall of a multitude of once thriving businesses throughout the state of California. If you have made this critical error in order to keep your business running and are behind in your Payroll Tax payments, please contact the payroll tax experts at the Tax Resolution Institute before it is too later. Our focus is to make sure your doors stay open as we negotiate with the IRS on your behalf, keeping your business viable.
When the big bankers on Wall Street who received huge government bailouts proclaim the recession to be over, they are far away from the everyday reality of small to mid-sized businesses on the West Coast. Particularly in California from San Diego to Silicon Valley, the economic crunch is tightening as weeks turn into months and months turn into years. When a once successful company faces such economic turmoil, it is not surprising that a business owner would cover necessary expenses with the IRS Trust Fund portion of their employee’s checks. In addition, such employers also tend to dip into the state portion of the trust fund as well, finding themselves in deep waters with the California Employment Development Department.
The Tax Resolution Institute understands that such survival choices are not criminal acts, but a type of fortitude and endurance in the face of real economic crisis. Believing that things are getting better and listening to the prognostications of Wall Street, many business owners temporarily choose to violate the Trust Fund, believing they will have the money to make their IRS deposits as business improves. When business does not improve, perhaps even worsening, they find themselves caught in the vise of a payroll tax crisis. If you are experiencing such inordinate pressure, the time to take action is now before it is too late. Ignoring such an extreme problem will not make it go away, even if you have yet to be contacted by the IRS. Sooner or later, the IRS will figure out what is going on and take extreme action. As the largest collection agency in the world, the IRS never forgets so contact us today.
About Peter Y. Stephan
Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.