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Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA |
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 » From: AOL-Land Dear TaxMama: Is there anyway to stop or negotiate the interest on a civil penalty? (trust fund recovery penatly - IRS) The amount is under $15,000 and an installment plan is in the works. Thank you, Rose  Sorry Rose, Not that I know of. IRS pretty much looks upon non-payment of payroll taxes as outright theft. They see too much of it. With the Trust Fund Penalty, you're still only paying half your legally required payroll taxes (the money you withheld from the employee). You've already gotten off the hook on the employer's half. IRS still has to remit the SS money to the Social Security Administration. They still have to give the employee credit for any refund to which they are entitled. So, the taxpayers are still on the hook to cover your obligation. And your employees, who don't know this, are either going to have to pay high fees to a tax pro who knows how to make sure they get credit for the money you didn't pay in (and often, for the W-2s you never issued either). Or this will be the start of those employees not filing tax returns for a couple of years until they figure out what to do. (Yes, this is one of those triggers that really does make people feel helpless and starts them on the non-filer path.) The various fall-out elements of an employer not covering their obligations are far-reaching, very expensive and very disturbing to the people affected. Much more than you realize. (This is my least favorite kind of case to work.) No sympathy from me on this one. So, no, Congress hasn't made any provision to let you off the hook. And, no, you can't bankrupt it, either. Sorry, this is one obligation you're going to have to see through to the end. And as a taxpayer, I'll admit that I am rather glad. Best wishes, Eva Rosenberg Your TaxMama  |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2003 - Eva Rosenberg |
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