Legal Question in Tax Law in Florida

Re: Employment Tax

Unfortunately, you could be found to be a responsible party. You should not be talking to the IRS. You should get representation. Call me or any other professional who specializes in resolving IRS problems. I will be in my office on Monday. I offer free consultations in person or on the telephone. I will be happy to help you.

Steven Klitzner

2450 N.E. Miami Gardens Drive, 2nd Floor

North Miami Beach, Florida 33180

305-682-1118

1-800-219-1118

305-932-0605 Fax

Re: Employment Tax

What the IRS is getting ready to assert against you (or perhaps has already asserted) is the "trust fund recovery penalty." This penalty, formerly called the "100% penalty," is a means by which the IRS collects the withheld payroll taxes from any and all persons who were responsible for collecting it and paying it over to the IRS, and who willfully failed to do so. Often this means the key owners of the business, but at times it is asserted against bookkeepers, accountants, and others who don't really "control" what happens.

This is a horrible liability to have -- the amounts are often extremely large, and unlike an income tax liability it is not dischargeable in bankruptcy. If you were not "responsible," and did not act "willfully," then you need to fight the assertion of the penalty vigorously.

You can find much additional information about his penalty in an article I wrote on the subject for the Maryland Society of Accountants. The article is in the articles section of my website, www.bjhaynes.com.

Good luck. Let us know if we can help you.