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Discussion Forum Index --> Advanced Tax Questions --> 1040 and withholding - payroll taxes not paid
Discussion Forum Index --> Tax Questions --> 1040 and withholding - payroll taxes not paid
LJACPA (talk|edits) said:
| 29 July 2009
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| I don't know how relevant this is but I'm curious how the IRS will deal with this. Taxpayer is 3 years behind on filing individual returns and is contacted by IRS regarding past due payroll taxes on his solely owned C corporation. Appears from the account transcripts that he/corporation never paid payroll taxes for all of 2007 and 2008 on his wages. Now, preparing these individual returns and including the wages and withholdings, what will the IRS do, if anything, concerning his individual returns when the taxes paid (as withholdings) have not ever been paid by his corporation? I see no issue if he were not the sole SH of the C corp, but don't know what happens in this case. Thanks.
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Death&Taxes (talk|edits) said:
| 29 July 2009
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| He does receive credit for the amounts withheld on the W-2. After all, it is the corporation that at this point that owes the money. Why penalize the 'innocent' employee?
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Kevinh5 (talk|edits) said:
| 29 July 2009
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| TFRP will resolve it
I'd claim on the 1040
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LJACPA (talk|edits) said:
| 29 July 2009
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| Thank you and that's what I'd intended to do. However, this 'innocent employee' is the guilty employer and with the IRS hot on his trail... Thanks again.
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Blrgcpa (talk|edits) said:
| 29 July 2009
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| The corp veil can always be broken and he will be required to pay the corp tax personally.
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