Unpaid payroll taxes and missing payroll tax returns can create the severest of financial pains and result in possible prison time, but most employers are not aware of it until it is too late. Itâ€™s a time bomb that will detonate if ignored, leaving its victims devastated from the aftermath. The civil penalties alone can be approximately 50% of the tax due alone and can be assessed personally against the business owner and others. The good news is that the time bomb can be defused if the right actions are taken by the tax professional before it is too late. Although the small business owner doesn't have malice or evil desires, the IRS doesn't take lightly unpaid payroll taxes and it has great powers and authority to collect. And when the employer is caught by the IRS years later, the damage has already been done. Businesses can be closed. Friendships can be strained. Marriages sometimes end in divorce. Tax professionals must understand the responsibilities and potential civil and criminal implications for unpaid payroll taxes. The better they understand, the better they can help their clients mitigate risk, and protect their firms from civil penalties. This course will help the CPA evaluate their client's payroll tax problems and advise their client on the best path to resolving the tax debt. Your instructor spent over 20 years with the IRS as a special agent, who specialized in investigating payroll tax crimes. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.
After attending this presentation, you will be able to...
- Recall the common statutes guiding the assessment and collection of payroll taxes
- Recognize when someone is a candidate for the Trust Fund Recovery Penalty
- Create a plan to defend a taxpayer against the TFRP
- Identify the criteria the IRS uses to evaluate collection potential
- Implement a strategy to resolve tax debts
The major topics covered in this class include:
- The common statutes guiding the assessment and collection of payroll taxes
- "Responsible party" and how it relates to the Trust Fund Recovery Penalty
- The steps of the TFRP process
- The various civil penalties for unpaid payroll taxes
- Seven options to resolve tax debts
- How IRS evaluates and investigates employment tax fraud