U.S. Court of Appeals Says Payroll Tax Mistakes “Not Willful”…

Payroll tax problems? Call (818) 704-1443 for expert help. A recent case decided by the Sixth Circuit Court of Appeals overturns the findings of the lower court which held that Roger Byrne and Eric Kus of the Eagle Trim company were the responsible parties in "willfully" not paying payroll taxes. This case is significant owing to the rarity with which these cases are successfully defended. "ALICE M. BATCHELDER, Circuit Judge. The Internal Revenue Code, 26 U.S.C.6672, permits the United States to recover unpaid trust-fund taxes from persons responsible for paying those taxes, if they willfully failed to pay [...]

Risks To The Small Business Owner Intensified After Employment Taxes And Trust Fund Court Decisions

Problems with employment taxes and the employee trust fund can be the death knell for a small business owner. The California District Court’s decision in United States v. Guerin illuminates the personal risks that small business owners and company executives face in regards to the trust fund and employment taxes. Responsible officers can face personal liability for their company’s unpaid employment taxes if the failure to pay over the taxes is determined to be willful. Risks To The Small Business Owner The Judge Does Not Care For Executive Excuses What the Guerin decision truly demonstrates is that willfulness is not [...]

Did You Know A Corporate Executive Can Be Held Responsible For The Trust Fund Recovery Penalty?

When it comes to the trust fund recovery penalty, the risk of personal liability for unpaid employment taxes has never been greater. In 2014, a district court in the Northern District of California held that the officer of an even now-defunct corporation is personally responsible for the Trust Fund Recovery Penalty based upon the company’s failure to collect, account for, and pay over federal withholding taxes. (See United States v. Guerin, 113 AFTR 2d 2014 N.D. Cal. April 28, 2014). Such a reality could be a potential threat for every corporate executive if they are signing on the bottom line. [...]

Payroll Services Owner Pleads Guilty In Criminal Payroll Tax Case In Los Angeles Federal Court

A conviction in a Southern California payroll tax case shows how serious the IRS is when it comes to paying payroll tax liabilities. After an investigation by the Los Angeles Field Office of the Criminal Investigation Division of the IRS, the owner of a Riverside-based payroll service pleaded guilty in the payroll tax case on January 5 to failure to pay federal payroll taxes intended for the Internal Revenue Service. As the co-owner and operator of Paycare, Scott Willsea embezzled from a federally funded program. Willsea entered a guilty plea in federal court after making a plea agreement with prosecutors. [...]

The Tax Burden Of The American Business Owner Revealed By National Federation Of Independent Business Survey

The Tax Burden In an effort to understand the tax burden of the American business owner, the Research Foundation of the National Federation Of Independent Business randomly sampled 12,500 NFIB members to ask them about a range of issues concerning the current federal tax code. The Tax Resolution Institute found the results to be an insightful look into the mind-set of small to mid-sized business owners in the United States, and their frustration with the complexity of the tax code and their current tax burden.  The Tax Burden of the American Business Owner The key takeaways from their tax survey [...]

IRS Told To Increase Trust Fund Recovery Penalty Actions So Business Owners Beware

Trust Fund Recovery Penalty Actions Emphasized In no uncertain terms, the IRS has been told to increase Trust Fund Recovery Penalty actions against business owners. A new report from the Treasury Inspector General for Tax Administration found that the IRS’s penalty actions against employers who fail to remit payroll taxes are neither timely nor adequate. The IRS has been lax when it comes to assessing the Trust Fund Recovery Penalty. The Tax Resolution Institute believes that this audit was the first step in an unleashing of IRS Revenue Officers against business owners across the country. Enforcement of the Trust Fund Recovery Penalty [...]