09 / 07 / 11


The Internal Revenue Service issued advice on Friday to employers who outsource their payroll duties to third party providers.

The IRS referred to some recent companies that pretended to be payroll service providers and instead stole funds intended for payroll taxes.  The IRS mentioned that regardless of what happens, the employer is ultimately responsible for the tax payments.  

"Even though you forward the tax payments to the third party to make the tax deposits, you-- the employer-- are the responsible party" said the IRS. "If the third party fails to make the federal tax payments, the IRS may assess penalities and interest.  The employer is liable for all taxes, penalties and interest due.  The IRS can also hold you personally liable for certain unpaid federal taxes." 

For more information on the responsibilities of employers outsourcing payroll and payroll service providers visit www.irs.gov

** Bryson Law Firm is a Louisiana based law firm focusing 100% of our practice on helping people and businesses solve their IRS and Louisiana state tax problems.