Category Archives: Payroll Taxes

Out Like a Lamb

One of the surest methods I know to get the IRS upset with you is to withhold payroll taxes and not remit them. Payroll taxes are called trust fund taxes; I’ve yet to know of a time when the IRS … Continue reading

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States Don’t Like Trust Frund Tax Violators, Either

I used to work in Stockton. And I know that I have at least one reader who resides there (a former co-worker). He is probably already aware of the problems that the Sang family faces. Richard Sang, his wife Amber … Continue reading

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If You Want to Visit ClubFed…

There’s a sure-fire method to get the IRS upset with you. Just withhold trust fund taxes from your employees (FICA and income tax) and don’t send them to the IRS. I can almost guarantee you that bad things will happen … Continue reading

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Why Trust Fund Tax Fraud is Bad

We received an email regarding the post we did on Ace Tire & Parts. The owners of Ace are accused of violating federal employment laws and have each pleaded guilty to one count of tax fraud. In any case, we … Continue reading

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A Bozo Scheme Fails

Please don’t try this yourselves. You have a successful business (in this case, Ace Tire & Parts of Coraoplis, Pennsylvania). You decide that you don’t have to pay payroll taxes; instead, you’ll make your employees checks payable to “Cash” and … Continue reading

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Payroll Processing Follies

There’s one task that I insist that my business clients do not perform themselves: payroll processing. Given the penalties and legal liability issues, I urge them to go with an extremely reputable company. There are several that do an excellent … Continue reading

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