Legal Question in Tax Law in Massachusetts

Payroll Woes

I run a restaurant and we are $20000 in arrears in 2006 payroll taxes. I own approx. 3% of the restaurant, an LLC, and I am not listed as an officer with the IRS. I have just been made aware that I may be held personally liable for these taxes since I sign the Payroll checks and handle the payroll. Our CPA (also our major investor and my business partner's father-in-law) just had his assistant fax me over a form 8821 and a form 2848 to sign with no explination. If I sign this, will it make me officially liable for these back taxes?

Things are not exactly good between myself and my business partner, as can sometimes happen when a business doesn't turn out the way you plan. I am just looking to protect myself. Is this safe to sign? I am just wondering why they want ME to sign it, when our CPA or my business partner could probably just sign it themselves. Thanks!!


Asked on 12/18/07, 12:58 pm

1 Answer from Attorneys

Re: Payroll Woes

Wihout looking at the LLC, it is difficult to know the extent of your liability. It may be that all Members of the LLC need to sign the forms involved. 8821 allows for disclosure of information and 2848 gives a power of attorney to the CPA listed to deal with the problem.

The IRS will go after whomever they can and need to get the money for payroll taxes. If you do not trust your partners, go see another CPA or Attorney for assistance.

Good Luck.

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Answered on 12/18/07, 1:09 pm


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