thorgoodlaw

  Many business owners are surprised to learn that payroll tax debt is treated differently from other types of tax obligations. When employees get a paycheck certain taxes are taken out before the money even reaches their bank account. Employers have to hold those funds and send them to the government. Because of that the IRS often views unpaid payroll taxes than ordinary business debt. The problem is that cash-flow issues can sneak up on a business. A customer pays late equipment breaks down sales decline for months and suddenly there is not enough money to cover every expense. When that happens some business owners make the decision to delay payroll tax deposits while trying to keep the company operating. The intention is often to catch up when business improves. Unfortunately tax agencies rarely see it that way. The balance keeps growing penalties are added. Interest keeps accumulating. Before long what started as a problem becomes a significant liability. This is often when bus...