Seattle Tax Attorney Helps Businesses Resolve Unpaid Employment Tax
Washington State Tax Law Firm Focuses on Employment and Sales Tax
Struggling companies sometimes fail to deposit their payroll taxes, thinking they cannot afford to do so. They plan to pay the deficiencies later, and federal and state taxing authorities do not demand payment immediately. The problem compounds, and eventually, tax collectors from the IRS and the Washington State Department of Revenue appear to collect the tax, penalties and interest owed. All too often, the scenario goes like this:
If immediate payment cannot be made, the company will enter into an installment agreement, and the taxing authorities will record liens on the company’s property in the register of deeds’ office in the county where the company is located. These liens prevent the company from selling or mortgaging interests in real property, and also harm the company’s credit. If the company does not cooperate with the taxing authorities, they will seize the company’s property.
Company Officers Responsible for Unpaid Tax
What some taxpayers don’t realize is the taxing authorities will also hold the company’s officers personally liable for the undeposited taxes of the business. Under IRS Code Section 7202, anyone required to collect, account for, and pay to the IRS any tax but fails to do so is guilty of a felony punishable by a fine of up to $10,000 or five years in prison, or both.
Employment taxes are the first thing an employer should pay, and if unable to do so, business owners are sometimes better off closing their doors immediately rather than risking the accrual of unpaid employment tax penalties and interest.
If your business has unpaid employment or sales tax and you are being held personally liable, you need to consult competent tax counsel about the issue. The tax law firm of Lana Kurilova Rich PLLC has been offering tax solutions to individuals and businesses in the greater Seattle area and around the world since 2003. Contact our firm online or call (425) 289-0629 to set up an initial phone consultation today.
