Business owners with unpaid payroll taxes are in deep trouble.
There’s no corporate shield when it comes to payroll taxes. Even if the employer is a corporation, the corporation’s managers are personally liable for the trust fund portion of unpaid payroll taxes.
The trust fund portion of the tax (the amount withheld from employees’ checks) can be assessed against anyone who could have paid that money to the IRS.
You are in the IRS’s cross hairs, personally, if the business hands out “net” checks to employees with sending the withheld money in. A bankruptcy discharge is no help here. [Read more…]