Much to the surprise of many business owners and those involved in financial operations, the IRS will hold responsible individuals personally liable for employee withholding taxes not turned over to the government. The entity — be it a corporation, limited liability company, or limited partnership — does not offer any protection against personal liability for these taxes.
Such withholdings are held in trust for the federal government, hence the name trust fund. When the business is unable to remit these taxes, the IRS will go after those they deem responsible and assess the amount of the unpaid withholding tax in the …read more
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