Discussion:Accountants Held Responsible for PR Taxes

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Discussion Forum Index --> General Chat --> Accountants Held Responsible for PR Taxes

DaveinTexas (talk|edits) said:

2 July 2013
I thought this was a very good article/summary of a recent case involving the TP's accountant firm. The accountant firm was held out as the financially responsible party and had to pay the payroll taxes on behalf of the delinquent TP.

It is a wakeup call to all of us on what not to do/how not to handle a payroll case for a client with deliquent PR taxes.


Once you get to the link, just click on "Click here for a Printable Version of the news article" at the bottom of the article for the 3 page report.

The source is from The Tax Book, no infringement intended. The Court Case is listed as Erwin, U.S. District Court, M.D. North Carolina, January 5, 2013. I was curious about the amount of penalties had to be paid.

Fsteincpa (talk|edits) said:

2 July 2013
I do payroll for people and we do the EFTPS payments as well. The difference here is that these guys acted as defacto controllers and controlled who got paid.

While it is a reason to worry, it is not a great big issue. Obviously, if a client begins to fall behind and start to not pay, then I believe we'd need to review the arrangement and either make sure they are paid, or stop doing the payroll.

EADave (talk|edits) said:

3 July 2013
Well said. I would've disengaged the clients as soon as IRS became a second priority. We have a limited payroll service, reports only usually.

Natalie (talk|edits) said:

July 6, 2013
Agreed. I think this says it all, ". . . duties ultimately included managing payroll and accounts payable,. . ."

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