Tax Minute


One of the easiest things for employers to do when they fall on hard times is to stop paying their Federal payroll taxes that were withheld from their employees and use those funds to operate their business. In many instances, it takes the Internal Revenue Service nearly a year to catch up with these taxpayers. By that time, the taxpayers are usually so far in over their head that the business ends up being shut down. Therefore, the IRS has announced an early interaction initiative where they will begin to keep much closer track of payroll taxes being remitted by employers and use both correspondence and field visits with these employers to state that there appears to be a problem with their Federal tax deposits when the amount deposited decreases. The hope is that if employers do start to fall behind on their payroll taxes, the Internal Revenue Service intervention will prevent the employers from falling further behind and limit the amount of lost taxes that the Internal Revenue Service, and therefore you and I, suffer.

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