My job is light bookkeeping payroll billing faxing sheets to the accountant for payroll taxes and sales tax.My employer owes IRS alot of back payroll taxes and continues to not pay her estimate tax deposit to the bank each month.My employer has also paid employees cash when they were on the time clock.And have paid employees on a straight check with no taxes taken out.I am worried that i might get involved in this whole audit problem.Should i be worried?
2007-05-20 05:42:40 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You would have a problem if you had check signing authority for your employer. The IRS could consider you a responsible person then and go after you for the unpaid payroll taxes.
2007-05-20 08:27:19 · answer #1 · answered by Anonymous · 2⤊ 0⤋
OK I AM STILL TRYING TO SEE WHERE YOU WERE INVLOVED IN IT BUT MAYBE I AM MISSING PART OF YOUR QUESTION....YOUR BOSS HAS AN ACCUONTANT DOING THE PAYROLL TAXES? I WOULD THINK THE ACCOUNTANT SHOULD BE ADVISING YOUR BOSS....AND UNLESS YOU KNOW THE ARRANGEMENT WITH THE CASH PAID EMPLOYEES HOW CUOLD U HAVE CONTROLLED ANY OF IT...I ADVISE MY CLIENTS REGARDING CASH EMPLOYESS THAT IF THEY ARE CONTRACT OR OUTSIDE LABOR THEY CAN ONLY BE TOLD WHAT TASK THEY WANT PRERFORMED AND THE TIME FRAME IN WHICH IT NEEDS TO BE COMPLETED...THEY CAN NOT TELL THEM WHEN HOW OR BY WHOM......AND HONESTLY I DO NOT KNOW FOR SURE BUT THEY HAVE BEEN INFORMED OF THE RULES, AND EVEN AS AN ACCOUNTANT YOU CAN ONLY OPERATE WITH THEINFORMATION WITH WHICH YOU ARE PROVIDED. I HAVE A CLIENT I AM FILING HIS 941 $ 940 REP FROM 2005 & 2006 AND THEN HE WANTED ME TO CHANGE THE INFORMATION THAT CAME RIGHT FROM HIS CHECKBOOK/PAYROLL REPORST...TO THIS I SAID YOU ARE ON YOUR OWN. IF I HAVE THE REPORTS I CAN NOT REPORT IT ANY OTHER WAY, BUT IF I AM MERELY GIVEN THE DATA I AM ONLY COMPLETING THE FORM...I PREFER TO KNOW MORE THAN JUST DATA, HOWEVER I ALSO KNOW MANY WHO DONT BOTHER AND BECAUSE THEY CLAIM TO BE REPORTING BASED ON CLIENT PROVIDED INFORMATION THEY ARE CLEARE...
DO COOPERATE WITH THE AUDITORS AS MUCH AS POSSIBLE, HOEVER ONLY ANSWER WHAT IS ASKED...BE HONEST AND FORTHRIGHT, BUT IF THEY ASK FOR THE 2ND WEEK OF MARCH DO NOT BRING THEM APRIL MAY AND JUNE AS WELL.... AND THEN I WOULD START GETTING MY RESUME OUT AND FINDING SOMEWHERE NOT SO WORRISOME TO WORK NOT TO MENTION HONEST THE BULD OF THE PAYROLL DEPOSIT IS MONEY WHICH HAS BEEN WITHHELD FROM THE EMPLOYEE TO NOT DEPOSIT IT IS BLATANT THEFT AS FAR AS I AM CONCERNED.
BUT I HAVE BEEN THROUGH SEVERAL AUDITS WITH CLIENTS AND THE LAST ONE WAS A NO CHANGE AUDIT EVEN...BUT THAT WAS NOT BECAUSE OF ME IT WAS DUE TO ME BEING PROVIDED ACCURATE INFORMATION TO WORK WITH.
GOOD LUCK
2007-05-23 17:14:51 · answer #2 · answered by kay 2 · 0⤊ 0⤋
Since you were aware of this and apparently participated in it, you could get involved. You would not be responsible for the payroll taxes that weren't sent to the IRS - that wasn't your responsibility.
Additionally, if you personally got paid "under the table" and didn't report it, you could be in trouble for that. And the IRS might well look closely at all the employees in this regard, since some were paid illegally.
2007-05-20 06:04:38 · answer #3 · answered by Judy 7 · 2⤊ 1⤋
And you were aware of this?!?
Yep, expect to be in the middle of it
I would recommend co-operating with IRS/FEDS
Otherwise, this Business Owner is likely to throw you (and anyone else tht touched the books) under the bus to save her own skin
In fact, given what you are saying.. if this was me, I would contact the IRS & ask for a private meeting prior to the audit & give them anything & everything you know... offer them the Moon & Stars in exchange for amnesty... well okay, if this was me... I would've refused to have any knowledge & if that knowledge was unavoidable.. I would've quit that job immediately
You are much better off being an informant than being in jail.... and You Are Aware.. therefore, if they can show this... you will be in jail (read about Richard Scruchy and how he nailed those underneath him for crimes he committed.. or read about US Infrastucture and the 21 folks who are in prison or are about to be in prison for any sort of association with bookkeeping.. even though they had no direct control of where the money was going)
I would change jobs ASAP!! I would REFUSE TO TOUCH THE BOOKS EVER AGAIN (better of to refuse to go back to this job ever again)
How could you know this & still work there & not see this train-wreck a mile before it happened??????
How does Federal Penetentiary & the inability to get a job because of a Federal finanical crime sound to you?????!!!!!!?????
2007-05-20 05:49:30 · answer #4 · answered by Bama 5 · 1⤊ 0⤋
Yes, you should be worried because you knew if was wrong. You could have contact the IRS via 800 number and not give your name or telephone number.
You are not in as much trouble as the owner. Depending on the amount of the penalties, and the impact to the employees, this company could be closed.
Most people do not realize the the consequence of back taxes to any company.
2007-05-20 05:58:26 · answer #5 · answered by D S 4 · 0⤊ 1⤋
It depends on many things
2016-08-24 03:00:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes because you are an accessory to what he has been doing.
2007-05-20 05:48:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋