Read More Great Taxation Articles
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What Is The Self Employment Tax?
Filing For An Employer Identification Number
6 Surprising Truths About Tax Preparers
What Tax Dangers Should You Be Aware Of?
Page 2
So what does the IRS do? They hold the person that signs the 941 tax returns responsible. In this case it was to the tune of about $28,000.00. Now this could of been avoided if the taxes had been paid before the court took possession of the company but of course the owner didn't have the means to pay anyway. There is a silver lining to the story though. The taxman that is normally the big bad bully in most cases was not here. Besides needing to provide copies of the bankruptcy paperwork and some other documents the IRS allows you to show whether you actually have the ability to pay the amount back yourself. Due to the fact you just filed bankruptcy and most likely lost your own livelihood you may not have to pay any of it. Of course each situation is different.
The main thing to learn here is that you need to be aware of your responsibilities as an owner when it comes to payroll taxes. The consequences of not knowing or fulfilling your obligations could ruin not only your business but you personally.
Return to Page 1
Cash Miller is the Editor of SmallBusinessDelivered.com and hosts his own blog at www.SmallBusinessDelivered.com/cash-millers-blog.
Page 2
So what does the IRS do? They hold the person that signs the 941 tax returns responsible. In this case it was to the tune of about $28,000.00. Now this could of been avoided if the taxes had been paid before the court took possession of the company but of course the owner didn't have the means to pay anyway. There is a silver lining to the story though. The taxman that is normally the big bad bully in most cases was not here. Besides needing to provide copies of the bankruptcy paperwork and some other documents the IRS allows you to show whether you actually have the ability to pay the amount back yourself. Due to the fact you just filed bankruptcy and most likely lost your own livelihood you may not have to pay any of it. Of course each situation is different.
The main thing to learn here is that you need to be aware of your responsibilities as an owner when it comes to payroll taxes. The consequences of not knowing or fulfilling your obligations could ruin not only your business but you personally.
Return to Page 1
Cash Miller is the Editor of SmallBusinessDelivered.com and hosts his own blog at www.SmallBusinessDelivered.com/cash-millers-blog.
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