Payroll Taxes

Avoiding Employer Payroll or Withholding Tax Liability

All employers must withhold taxes from employee wages — income tax, Social Security tax, and Medicare tax. Together with the employer's matching Social Security tax, these are collectively known as payroll taxes that must be paid by the employer to the IRS every quarter. These are sometimes known as trust fund taxes, because the employer theoretically holds them in trust until they're paid. Failure to make payroll taxes at the right times and in the right amounts can cause serious problems for your company.

If you need legal advice about the best ways to avoid or resolve problems related to federal payroll taxes, contact an experienced attorney at The Fried Law Firm in Bethesda. As experienced business and tax lawyers, we can advise you about the full range of your withholding tax obligations. We can also help you avoid or minimize the serious penalties that can follow payroll tax violations.

Call 866.439.0886 for advice about payroll tax problems

In the event of any violation of an employer's withholding tax responsibilities, the IRS has a formidable set of tools to enforce compliance and collect delinquent balances. Revenue officers who specialize in the enforcement of employment taxes can attach bank accounts or inventory or even move for the liquidation of a business to meet unpaid obligations.

The IRS can also seek to impose personal liability for payroll taxes upon a company's principals — owners, managers, directors, or any "responsible person" deemed to have had a voice in the decision to cut corners in withholding taxes. Trust fund recovery penalties (TFRP) against individuals can be very expensive and difficult to discharge in bankruptcy. In extreme cases, individuals can face criminal liability for payroll tax violations.

Our attorneys can represent both corporate employers and individuals facing liability as a responsible person. Based on decades of experience, we have our own range of options to choose from in working toward the best possible outcome for you. We can negotiate a payment plan or offer in compromise. We can defend your company from forcible collection measures or use bankruptcy to your advantage. We can also challenge the characterization of a particular individual as a responsible person who can be held liable.

To learn more about our experience with the resolution of serious payroll tax problems for employers and businesses of all kinds in metro Washington, Maryland or Northern Virginia, contact a knowledgeable tax lawyer at The Fried Law Firm in Bethesda.