Did you know that business executives and even rank-and-file employees can be held personally liable for corporate tax obligations in some circumstances? Where corporate obligations remain unpaid (for example where the employee share of taxes are withheld from paychecks but never remitted to the government) the IRS may go looking for a “responsible person“ – that is, someone whose position allowed them to complete the remittance but that person chose not to, directed employees / contractors / vendors not to pay the appropriate amounts, or knew or should have known that proper remittances weren’t made. In addition to coming after the company, the IRS can seek to require any “responsible person” to pay the corporate tax liability.
Now is a good time to review the checks-and-balances your organization has in place to ensure that remittances are appropriately paid to the government.
If you have any questions or would like to discuss tax or corporate organization issues, please contact Fred Parker.