Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

KNOW YOUR PAYROLL SERVICE

June 26, 2006

A frightening story out of New Jersey:

The owner of a New Jersey machinery manufacturing company is charging that New York-based TTS stole $47,000 of his payroll tax payments from the final three quarters of 2005. And he could be one of many potential victims in a case that has apparently drawn the attention of the Treasury Inspector General for Tax Administration.

The New Jersey company used TTS as their payroll service provider. TTS was supposed to remit payroll taxes on the company's behalf. TTS employees, according to a Tax Analysts story, may have made off with the funds. Apparently the IRS isn't being very sympathetic:

Documents provided to Tax Analysts show that Gaum Inc. owes the IRS roughly $47,000 in deficient withholding taxes. Kenny's client has also received notice of a federal tax lien. Kenny said that despite his client's involvement in the TIGTA investigation, the IRS has informed Kenny that the lien will not be released until payments are made.

If you are counting on a payroll provider to take care of your tax deposits, make sure its somebody you trust. If your payroll service provider doesn't remit your payroll taxes, the IRS will come after you. The IRS doesn't make it easy to check online whether your deposits are getting made, but if your tax advisor has your power of attorney, he may be able to check you account for you.

Permanent link to Tax Analysts article (Tax Analysts paid subscribers only).

      Bookmark: del.icio.us • Digg • reddit