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941 payroll tax:

Payroll (941) Taxes (Not dischargeable in a bankruptcy)

A lot of times the 941 payroll tax issue results from either not filing a required payroll tax form on time, or not filing it at all. If you have paid your payroll tax deposits, and simply had a problem with a form, the IRS is usually willing to let you clear it up simply by getting the form to them as quickly as possible. You may be assessed a small penalty, but that’s not always the case.

The real 941 payroll tax problems are those that result from failing to make the required payroll tax deposits on time and in the correct amounts. If you own a business that has employees, even if that employee is just you and/or your spouse, you have specific deposit requirements. These are the most common:

  1. Social Security tax
  2. Medicare tax
  3. Federal income tax
  4. Federal Unemployment tax

Federal Employment and Payroll (941) Tax delinquencies can result in the assessment of massive penalties and interest along with the seizure of your business and PERSONAL assets. Federal Payroll (941) Tax laws give the IRS greater authority to collect what is owed. This authority includes the ability to collect these taxes from the owners and corporate officers. Even if the business is voluntarily or involuntarily closed, the owners/corporate officers are PERSONALLY LIABLE for these type of taxes – and Payroll (941) Taxes CANNOT be discharged in Bankruptcy!

Form 941: Employer’s Quarterly Federal Tax Form is the form used by employers to report employment taxes, withholding amounts, deposit amounts, and amounts due to the IRS.

Delinquent Payroll (941) Tax problems are full of obscene interest and penalty charges, such as:

  1. Penalty for filing a late return or corporate report.
  2. Penalty for making a late deposit or failing to make one.
  3. Interest on the delinquent taxes and interest on the penalties!
  4. Assessment of penalties that no one can seem to adequately explain to you.

Adding the above amounts together, it’s easy to see why Payroll (941) Taxes are often called the 100% Tax. Penalties and interest added together can quickly EQUAL 100% of the ACTUAL TAX

Ansari Law Firm, Attorneys & Lawyers  Tax, Alpharetta, GA

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