More enforcement of unpaid payroll taxes against owners and officers
More enforcement of responsible person penalty likely. If an employer fails to properly pay over its payroll taxes, the IRS can seek to collect a trust fund recovery penalty equal to 100% of the unpaid taxes from a person who is responsible for collecting and paying over payroll taxes and who willfully fails to do so. A recent report issued by the Treasury Inspector General for Tax Administration has found the IRS has often not taken adequate and timely actions in assessing and collecting the responsible person penalty. The report also makes recommendations for improvements. The IRS has agreed to implement the recommendations, making greater enforcement of the penalty more likely. This means that the IRS will be more alert than ever to enforce the responsible penalty against people involved as in officers and owners.
