Someone I worked for a few years ago is being investigated be the IRS. At the time I worked for him, there was a period where I would calculate the sales tax owed and fill out the little coupon he had to turn in to the IRS. He is in a lot of trouble now it seems, for not paying his taxes. Could this cause any heat for me? I guess I just worry about my signature being on that little coupon. I have gone through the whole interview and afadavit(sp?) process, answering all the questions the IRS had about my time employed there.
I guess I am just a little nervous because the IRS is made to seem like this horrible agency and I do not know much about all the regulations and laws they have.
2007-06-12 07:10:17 · 4 answers · asked by jefapralenes 1 in Business & Finance ➔ Taxes ➔ United States
Yes, from what I can tell, this is way more than just a sales tax issue. I was pretty sure that I had nothing to be worried about, it is just nice to have reassurance sometimes. Again, I think it is just that whole 'they are out to get me' mentality that just about everyone seems to have about the IRS. I don't know why either?!? The person who did my interview was thorough but also very polite. Thanks for responding to my question.
2007-06-12 07:28:59 · update #1
Something doesn't make sense here. Sales tax is a state issue, not federal (IRS). Sounds like he screwed with a lot more taxes than sales tax, if the IRS is on him.
As long as you did things as honestly as you knew how when you worked for him, and told the truth in your dealings with the IRS, you'll be OK.
2007-06-12 07:18:26 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If you were merely a worker rather than an executive officer at the company, then its the company & its officers that have to worry. Although you may have completed the payment coupon it is probably not you who signed the annual, quarterly, or monthly sales tax returns and annual income tax return.
Also, IRS doesnt collect sales tax - only states do. Did you mean employment or estimated income tax instead of sales tax?
2007-06-12 14:29:21 · answer #2 · answered by goldenboyblue 3 · 0⤊ 0⤋
The IRS doesn't collect sales taxes. That's a state function only.
If he's in trouble with the IRS over income or payroll taxes and you were not responsible for those areas you have nothing to worry about.
2007-06-12 14:15:00 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You probably have nothing about which to worry, UNLESS you willingly took part in fraudulent reporting for this person. However, the fact that you honestly and properly performed your duties as an employee/subcontractor for this person will not reflect negatively upon you.
2007-06-12 14:13:56 · answer #4 · answered by acermill 7 · 0⤊ 0⤋