Is The IRS Targeting Your Payroll Taxes In South Carolina? What You Should Do As A Business Owner

In this article, you will discover:

• Whether unpaid payroll taxes from your business will trigger personal liability.
• How the IRS investigates unpaid payroll taxes.
• Whether the IRS will shut down your business for unpaid payroll taxes.

Can Unpaid Payroll Taxes Trigger Personal Liability In South Carolina?

Unpaid payroll taxes can trigger personal liability in South Carolina. The IRS has a penalty called the Trust Fund Recovery Penalty. Under that penalty, if you, as the business owner, don’t pay the payroll taxes when due, you can be assessed the federal tax, Medicare tax, and Social Security tax on a personal level.

The IRS can collect from either you or your business, but will only collect the total one time.

On the South Carolina side, a similar program holds you liable for the South Carolina payroll tax that has not been paid.

How Does The IRS Initiate A Payroll Tax Investigation?

Generally, the IRS will send a letter to you. If you ignore that letter, the next step involves a revenue officer coming to the business.

Can The IRS Shut Down My Business For Payroll Tax Noncompliance?

Yes, the IRS can shut you down if you make no effort to resolve the problem. Typically, they don’t want to shut down businesses because that’s bad for our overall economy. In most cases, they would not go so far as to close a business as long as you are in communication and trying to work out a resolution.

What Steps Should I Take Immediately After Receiving A Payroll Notice?

You should either call or respond in writing to the revenue officer who sent the payroll notice, indicating that you do want to resolve these issues. They will send you a Form 9297 that lists the documents they wish to review.

How Can I Protect Myself From Future Payroll Tax Issues?

The best way to protect yourself from payroll tax issues is to use a payroll service. They are professionals who know how to handle taxes. If you don’t go that route, you or someone you trust must file and pay the payroll taxes on time.

Still Have Questions? Ready To Get Started?

For more information on IRS payroll tax audit in South Carolina, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.