Thursday, August 7, 2008

Behind on Payroll Taxes? Your the IRS' New Target

The Details
Per a press released recently sent out by the IRS, businesses behind on their payroll taxes will become a new collection target for the IRS. Citing 10 years worth of back payroll taxes, the IRS will go after $58 billion in unpaid funds and also stated that this will be a long term improvement effort of increased collection.

Are They Serious?
If history is any indication, then I believe this ramp-up will actually take place. In 2002 the IRS collected $3 million in back payroll taxes and in 2007, $52 million--an obvious and substantial increase.

Who Does It Affect?
There is a silver lining, although very thin and partially covered by clouds. Of the $58 billion, the IRS has declared $30 billion noncollectable for various reasons ranging from businesses being defunct or insolvent. Additionally, it generally takes 40 weeks for late payroll taxes to hit the IRS' radar. So if you've within that time frame get your but in gear and RESOLVE THOSE BACK TAXES!!

For further information on back payroll taxes or the collection process, see the following resources:

The IRS Collection Process

Borrow From Your Payroll Taxes, Go Directly To Jail

When Payroll Taxes Become Personal

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