Video instructions and help with filling out and completing Will Form 843 Withheld

Instructions and Help about Will Form 843 Withheld

Hi I'm kept Kepner CPA here in Dallas have you heard of the hundred percent penalty well that's what the IRS calls a penalty when a company doesn't pay its payroll taxes so the IRS assesses the officers and or owners for pain the trust fund portion of those payroll taxes trust fund means the taxes that are withheld from an employees paycheck so if you're the owner of a corp and the Corp doesn't pay their payroll taxes you can be held personally liable for the trust fund portion of those taxes they call it a hundred percent penalty but that's really a misnomer because if you pay all of those trust fund taxes then the Corp only owes yet the remaining company share and penalties and interest so it's not like it's really collected twice but it's hundred percent because it's owned by the company and it's owned by you the owner or officer until it's paid in full so what happens if you learn about the unpaid payroll taxes that occurred before you became an owner or officer of a company well unfortunately the IRS can get you there to an owner and a CFO and a CEO of a company came into a new business on a business that had been in operation and had not paid their payroll taxes before they came on board the officers learn that these payroll taxes were not paid and what did they do they took funds in the Corp and paid other bills first so the IRS made a collection effort on the company they found out that the new CEO and the new CFO knew about the payroll taxes even though occurred before they came on board but because these new officers chose to pay other things other than tyrol taxes than they were held personally liable for the trust fund portion of these payroll taxes even though they had nothing to do with originally not having those paid so if you are coming into a company in a leadership role as an officer CFO or a CEO you want to find out if that company has paid all their payroll taxes if they have not then you've got to make sure that they are paid first or you're going to be out of luck if they don't get paid eventually so it's just another way that the IRS says we're going to collect on those payroll taxes and even though you didn't have anything to do with it in the first place if you don't take care of business right away and get it solved you're going to be paying for it personally if you need help analyzing that in some company you're coming to work for give us a call because we can help you with that thanks