Can the IRS hold a past employee responsible for the company not paying taxes?
I was a former employee of a construction company and always told the boss that we did not have the funds for taxes and that he needed to put money in the bank. I was an acting office manager but never signed any documents stating I was in charge. I told the accountant that I could not pay the amount and I told the bookkeeper as well. I now have a letter from the IRS asking me to meet with them! I am terrified! I did do the payroll for all employees and told the owner, the accountant and the new bookkeeper that I did not have the funds to pay the taxes. I was fired in June of 08 and the IRS is asking for the taxes in the 1st quarter and the 2nd quarter of this year. I was not employed for the 2nd quarter and how could I be held responsible? All proof is at the old job site and on the computer! I wrote notes and notes stating that I had told the owner that there were no funds for taxes. I was just employee I did not hold shares nothing! I wasnt an officer I had nothing tieing me to his business other than I worked there.
Asked By: tinker143 - 11/20/2008
Best Answer - Chosen by Asker
As somebody with some authority, the IRS may consider you "eligible" to be gone after for those withheld payroll taxes. They generally go after the owners (which I assume you are not) and some people that might have inside info. Their purpose in going after you is they are hoping that you will roll over and spill... More
Answered By: Bob F - 11/20/2008
Additional Answers (6)
If you had your own taxes taken out of your check, you are not liable for what a company does w/ their share.
Answered By: Your Friendly Jewish Accountant - 11/20/2008
Payroll taxes are serious business. If the IRS concludes that you had authority to make/not make the payroll deposits, yes, it can hold you liable.
Answered By: v b - 11/20/2008
If you did not have the fiduciary responsibility then you are not in trouble. If you can prove you notified the accountant and the boss of the shortfall, then you have covered your bases. I assume the IRS is trying to find out who to pursue for back taxes, interest, and penalties.
Answered By: lestermount - 11/20/2008
First of all, stop worrying... More
Answered By: Barry auh2o - 11/20/2008
Just because the IRS wants to talk to you is no reason to panic. They are trying to get the facts.
Answered By: Steve L - 11/20/2008
Hire a representative (attorney, enrolled agent, CPA) to state your case to the IRS. Do not go to the meeting yourself, you are terrified... More
Answered By: ninasgramma - 11/20/2008
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