28 June, 2025 | payroll tax
Can You Really Go to Jail for Unpaid Payroll Taxes? The bad news is, yes, you can go to jail for unpaid payroll taxes. The good news is, this is generally only a risk if you're willfully avoiding the IRS’s attempts to remedy the situation or you’re intentionally attempting to defraud the IRS or evade paying taxes. Not paying payroll taxes isn't necessarily a crime. But tax fraud and evasion are crime... CONTINUE READING
8 March, 2025 | payroll tax
Summary 1. IRS Letter 5857 is sent to taxpayers who have fallen behind on their employment tax deposits, notifying them of an impending phone call from a Revenue Officer to discuss the issue. 2. The IRS prefers to resolve tax issues early and may offer payment arrangements or other relief options. 3. Ignoring the letter can lead to escalating collection efforts, including in-person meetings, liens, levies, and the Trust Fund Recovery Penalty (TFRP), which can hold in... CONTINUE READING
8 March, 2025 | payroll tax
Summary 1. The failure to deposit penalty is assessed when a company fails to collect and transfer payroll taxes, including federal income taxes, Social Security taxes, and Medicare taxes. 2. The penalty is based on the number of days the deposit is late and can range from 2% to 15% of the unpaid amount. 3. This penalty can add up quickly, especially if it’s part of an ongoing issue with late or missed deposits. 4. The IRS also charges interest on penalties... CONTINUE READING
5 December, 2023 | payroll tax
Unpaid Payroll Taxes: Penalties, Personal Liability, and More An overwhelming 70% of all revenue collected by the IRS comes directly from employee wages. That said, the tax agency puts a lot of weight on payroll taxes and ensuring that businesses pay the right amount... CONTINUE READING
Why Did I Get a Certified Letter from the IRS? Receiving a certified letter from the IRS may cause you to feel nervous. After all, most IRS notices don’t usually signal happy news. While the IRS may not b...
