I Have Overdue Corporate Taxes. Will the IRS Come After Me Personally?

On: August 14, 2023

One of the biggest responsibilities that you have as a corporation is to make sure you remain in compliance with the IRS, file your taxes on time, and pay all due taxes by their due date. Not doing so can lead to consequences such as fines, suspensions, and penalties.

The IRS is no stranger to corporations not paying their taxes on time or in full due to a number of reasons. They will take quick collection action to collect the money you owe. Not being in compliance with the IRS, being under an audit, or owing the IRS money is all stressful for any business owner.

If you have unpaid corporate taxes or you are in need of assistance filing your corporate taxes, it is recommended that you work closely with an experienced IRS tax expert. This way, your tax liability is limited and the tax professional can work with you to get a payment plan or other arrangement approved.

Is a Corporation’s Owner Responsible for Unpaid Taxes?

When a corporation owes taxes, it is important for those taxes to get paid. Not paying them leaves someone on the hook for them. The IRS will not simply erase the owed amount because the business closes or cannot afford to pay at the moment.

In general, any individual within the company that is required to collect, pay, and account for the taxes paid to the IRS can be held liable for any unpaid taxes. This can include a number of people from the payroll supervisor to the accountant or the chief financial officer and so on.

Anyone who is responsible for the payment of taxes to the IRS is responsible for any taxes that go unpaid at a corporation. If the determination is made that the individual is responsible for the corporation’s taxes, they can be held liable personally for the back taxes. Since an individual can be held personally liable for back corporate taxes, the individual’s assets, income, and other personal property could be seized or garnished.

What Taxes Can Someone Be Held Personally Liable For?

There are several different types of taxes that someone can be personally liable for in a corporation and those include:

• Withheld taxes from checks
• Sales and use tax
• Associated fines and penalties
• Payroll taxes

Is All of the Liability Placed on Just One Individual for Back Corporate Taxes?

No, not always. It is possible for there to be a joint liability in unpaid corporate taxes. In these cases, the IRS deems there to be multiple individuals responsible for the corporation’s back taxes, and the liability is then shared.

So, I Really Could Be Personally Responsible for a Corporation’s Back Taxes?

Yes. In fact, not only can you be held responsible for them, but the IRS can also initiate collection proceedings against you. You will also owe penalties and interest on the amount.

A situation of back corporate taxes can quickly spiral out of control and you may find yourself on the hook for a very large tax bill.

Get Control of Corporate Back Taxes with the Help of Leading Tax Group 

It is imperative that you retain a professional and experienced tax attorney if you have or think you have back corporate taxes. If you do not, you could find yourself in a serious financial situation and lose not only your job but your income and assets too.

Protecting you and your assets is our job here at Leading Tax Group. We understand just how important it is to correct corporate tax issues and will do just that for you. Our team works hard to protect individuals and businesses from the IRS. We will work closely with you to build a case and represent you in front of the IRS and tax court.

Don’t let back corporate taxes bring you down and retain counsel from our experienced IRS tax experts at Leading Tax Group today.