Expo Holdings Inc. (EXPH)

[mahatmapaul]

And another good summary!

What Happens if Your Business Hasn’t Made its IRS Payroll Tax Deposits?
March 21st, 2009

One of the worst tax violations is the failure of an employer to remit payroll taxes it has withheld from its employees’ pay.

Despite its gravity, it is also one of the most frequent tax problems we encounter.

Payroll Tax Delinquencies are Treated Harshly
The IRS is required by law to give employees the benefit of all taxes withheld by their employers whether or not such taxes were remitted to the government.

In short, when an employer fails to turn over withheld taxes the IRS loses money.

Withheld Taxes are Held in Trust for the Government
The payroll taxes an employer holds back from an employee (the “Trust Fund”) never belong to the employer, but rather are held in a constructive trust for the federal government.

Thus, every employer is a Trustee whose sole beneficiary is the United States. As a Trustee, the employer has a fiduciary duty to properly report and turn over all withheld taxes.

If you don’t do it, it is considered by the feds to be theft of government funds.

Installment Payment Plans for In-Business Taxpayers
Employers who are behind in their payroll tax deposits can count on immediate and aggressive collection action by the IRS.

There is good reason for this: The IRS is concerned that a delinquent payroll tax employer who is still in business will continue to use the Trust Fund for its own purposes.

The IRS calls this “pyramiding” and if you keep doing it you could end up in one.

Warning: If you haven’t made your payroll tax deposits, you need to immediately come up with a plan to do so. The IRS is cracking down on employers who withhold payroll taxes from their employees’ paychecks and then use that money for their own purposes. If you can’t pay what you owe, speak to a qualified tax professional about your options. Procrastination and avoidance will only make matters worse.


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from http://blog.pappastax.com/index.php/2009/03/21/what-happens-if-your-business-hasnt-made-its-irs-payroll-tax-deposits/