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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • Small Business Owner? Behind on Payroll Tax? You may be committing a Federal Crime.

    The Internal Revenue Code (IRC) at 26 U.S.C. Sect. 7202 makes the willful failure to collect, account for, and pay over employment tax a felony.  See 26 U.S.C. Sec. 7202. 26 U.S.C. Sect 7215 makes it a misdemeanor for simply failing to pay the money collected. Yes…it is a misdemeanor to collect FICA and Income…

  • My Company owes the IRS a substantial amount of Payroll Tax. Can the IRS take money from my personal account to pay it?

    Assuming that the business is a multi-member LLC or Corporation, it owes the Payroll Tax.  You don’t…at least not yet. As you know, the business withholds Social Security (FICA), Medicare and Income Tax from it’s Employees’ paychecks.  The business holds that money and adds some if it’s own to the pot.  It sends the entire…

  • I was assessed an IRS Trust Fund Recovery Penalty, so was my Business Partner. I paid, he didn’t. Can I sue him for his share of the debt?

    Yes, you can try to recover from another person who was assessed an IRS Trust Fund Recovery Penalty under IRC Section 6672….but who didn’t pay their share. Some more explanation is in order, but first some background: Trust Funds? The simplest way to understand what a Trust Fund Tax is would be to look at…

  • IRS Trust Fund Recovery Penalty – 3 Reasons Why It Can Be “Scary”

    The IRS Trust Fund Recovery Penalty The Phrase sounds scary and complex. In theory, it isn’t that complex. It can be scary though and especially for the small business owner who is struggling to make a profit each month. First…Why it isn’t that complex The basic idea behind the penalty is that Congress wanted to…

  • Trust Fund Recovery Penalty: Responsible for making sure payroll tax gets paid by the business? You need to be aware of this.

    Congress passed a law a long time ago that was meant to “encourage” employers to pay the income and employment tax (social security and medicare) they collect from employees’ paychecks. This law provides for a penalty to be assessed if the tax collected isn’t paid. That penalty is called an IRS Trust Fund Recovery Penalty….

  • IRS Payroll Tax – Figure out a way to pay it or it will “pyramid”

    IRS Payroll Tax Access to capital is often difficult for a small business. Especially right now. Many small businesses faced with a cash flow problem can’t pay the FICA or Payroll tax. The money just doesn’t exist. The problem often gets worse and eventually the IRS shows up and asks for it. Some businesses avoid…

  • Independent Contractor designation and the problems it can cause for your small business

    Employment tax law requires the employer to withhold the employees’ fica tax, unemployment tax and income tax from the paycheck, throw it in a pot, mix some more money into the pot equal to the employee’s fica tax and shoot the whole thing over to the IRS each quarter. This process requires a lot of…

  • Small business and IRS audits – What they are looking for and how to prevent problems

    IRS Audit and Your Small Business Face it…The Government is at odds with small businesses in America.  Money “belongs” to the government first right?…and small businesses move around alot of it. This makes the government uncomfortable, just like you would be if you asked your small child to watch your stash of bills. Thus, the…