Our collection of IRS horror stories may have resonated with you, especially if you’ve been audited. Unfortunately, we only scratched the surface. Now, we’re back with several additional cautionary tales, this time outlining the perils of IRS Form 941:
Publishing Company Payroll Taxes
The IRS can be surprisingly forgiving when individual employees fail to file or pay taxes on time. Unfortunately, such forgiveness rarely extends to business owners or other parties responsible for collecting and passing on payroll taxes. This was clear in Jenkins v Unites States, involving a publishing company CEO deemed responsible for payroll taxes. Timothy Jenkins’ former business partner Gary Puckrein had signed the returns for Dialogue Diaspora, Inc. federal payroll taxes, but failed to actually pay up. Upon learning of the company’s continued non-compliance, Jenkins had him removed. Despite this, Jenkins was still eventually held liable by the IRS due to his position of responsibility within the company.
An Executor Nightmare
Becoming an executor is a huge responsibility, but few people expect this role to involve extensive back taxes. Sadly, in a story highlighted by MarketWatch, an executor was targeted following the failure of inn operators to pay withheld federal taxes. The executor was ultimately identified as the responsible party.
Tax Embezzlement — Not Forgiven After Death
Business owners James and Gayle Oppliger sought accounting and tax return assistance from Mary Kerkman, who not only embezzled funds, but committed suicide in 2002. Shortly thereafter, the IRS arrived, seeking payment on the Oppligers’ delinquent payroll taxes. The Oppligers appealed after a federal district court held them liable — but their appeal was denied. If anything can be gleaned from this sad story, it’s this: always vet tax services carefully to ensure you work with the most trustworthy firm or individual available.
Don’t fall victim to the fiascos outlined above. Work with a trustworthy tax expert to ensure your payroll taxes are in order. Call 720-398-6088 for more information about the Highland Tax Group’s services and history of success in dealing with the IRS.