Payroll Taxes and Withholding

At Thorn Law Group, we have extensive experience representing business owners in audits and disputes with the IRS over the withholding and payment of payroll taxes.

Withholding taxes are the income and social security taxes an employer withholds from the wages of its employees. The employer may have additional withholding responsibilities, particularly when payment is to a non-U.S. citizen or resident.

Failure to withhold and pay over the taxes to the IRS can result in significant fines and penalties, including a Trust Fund Recovery Penalty, which the IRS can assess against any individual taxpayer responsible for withholding and paying over the tax. The Trust Fund Recovery Penalty is equal to 100 percent of the unpaid tax amount and is assessed in addition to all other available fines and penalties.

The IRS is very aggressive in pursuing unpaid payroll taxes. In addition to the Trust Fund Recovery Penalty, the Service is quite willing to criminally prosecute those who willfully fail to file payroll tax returns, or to pay payroll taxes.

If your business has been selected for a payroll reporting and withholding audit, or if you are the potential target of an IRS assessment of the Trust Fund Recovery Penalty, contact Kevin E. Thorn at 202 349-4033 today. Thorn Law Group’s experienced tax attorneys can explore your options with you.




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