I just found out that the company I work for has not paid the payroll taxes for Aug, Sept, or Oct. By law, they are supposed to be reported. My question is, once reported, how long is it usually before the IRS comes to the door? They were late paying for one month already this year, but not like this. They haven't even paid the employee portion nor do they have the money to do so.
2007-11-28 07:03:10 · 4 answers · asked by char727 1 in Business & Finance ➔ Taxes ➔ United States
While the IRS has the authority to shut down an employer, they try to limit the use of such tactics (the kinder and gentler IRS). As the problem is recent, I would expect that they will not be at the door for a minimum of 3-4 months (October is in 4th quarter - that report is not even due until January 31, 2008). When they do show up, the company is likely to be given a chance to catch up. If your assessment is that the circumstances causing the delay in payment is a temporary set back, you may want to ride this out.
Otherwise, follow the advice of getting your resume out there, but don't be so hasty as to take any job that comes along. You probably have some time before the situation gets critical.
2007-11-28 07:42:55 · answer #1 · answered by bbcpa7 2 · 0⤊ 0⤋
The tax return covering August and September should have been filed October 31. It will take six to eight weeks for IRS to send a bill. That bill will be followed up in five weeks with a final notice. Penalties and interest on this bill will run about 20% of the tax due--a hefty hit for three months delinquency. If it looks like they will not be paying the November tax, or December and business is not improving, this is a clue that the business is on the way out and you should start looking for a new job real soon. If you have the authority to sign checks, get yourself taken off the signature card now.
2007-11-28 10:44:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I'm not sure how long the IRS will take to catch up with the company, but it sounds like this ship is going down fast.
You may want to start looking for work elsewhere.
BTW, if your check stub says that your portion of the taxes was paid to the IRS, they won't come for you. It is all on the employer.
2007-11-28 07:13:47 · answer #3 · answered by Invisigoth 7 · 0⤊ 0⤋
I would say the IRS will be there any day to padlock the doors and seize whatever assets are on hand. Been there, done that. Twice in my working career.
If you work there, today would be a good day to start floating resumes!
2007-11-28 07:19:16 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋