Employment Tax & Trust Fund Recovery Penalties

Seattle Employment Tax Lawyer

The IRS requires that employment tax be paid by both employer and employee. The employer pays half and withholds the other half from employees' paychecks, holding that money in trust for the federal government before remitting it. If an employer fails to remit the employees' portion of the employment tax, which is a trust fund (a fund held in trust by the employer for the federal government), that employer is at risk of facing serious consequences, including personal financial liability and even criminal prosecution of the employer's officers.

The Bellevue, Washington, taxation law firm of Lana Kurilova Rich PLLC provides representation to employers in the Greater Seattle area, statewide and nationwide. If you have been contacted by the IRS about an employment tax issue or trust fund recovery penalties, or you suspect you will be, call us at (425) 289-0629 for a free initial phone consultation with our Seattle employment tax attorney.

Not Remitting Employment Tax Is Different Than Not Paying Income Tax — Our Washington Attorneys Can Help When You Face Trust Fund Recovery Penalties

Many employers who run afoul of the IRS because of failure to remit employment tax do not take the matter seriously. They believe that the issue is similar to failure to pay income tax. In reality, it is a much more serious issue with much more serious consequences.

Our first step is to explain the consequences. We will discuss the fact that the IRS can pierce the corporate veil in order to collect the trust fund recovery penalty from the individuals responsible for not timely remitting the trust fund. They can go after a business's owner or its officers and collect personal assets in these cases. Furthermore, not remitting employment taxes may be considered theft and can lead to criminal charges in certain circumstances.

Of course, our goal is to move quickly to prevent the matter from escalating to the criminal realm. If the IRS has made an error, we know how to work with them to resolve it. If employment taxes need to be remitted, we will determine the best method for getting your business back in good standing with the IRS.

Call (425) 289-0629 for a Free Initial Phone Consultation

We invite you to contact us today by phone or by e-mail to discuss your case with our experienced Washington trust fund recovery penalties lawyer. Find out how we can help. We serve clients nationwide.