Collection of Employment Taxes – Info for Employers (Part II):
What the IRS will do if you do not pay your employment taxes:
- The IRS will assess a failure to deposit penalty, up to 15% of the amount not deposited in a timely manner.
- The IRS may file a Notice of Federal Tax Lien and/or take levy action
- The IRS may propose a Trust Fund Recovery Penalty assessment against the individuals responsible for failing to pay the trust fund taxes.
- The IRS may refer this matter to the Department of Justice for civil collection or criminal prosecution for failure to adhere to the reporting and payment requirements mandated by the Internal Revenue Code.
Next week: What are trust fund taxes?
(IRS Publication 594 and IRS.gov) (TTT 10/29/19)