Non-owner Liable for Unpaid Employment Taxes

A “responsible person” who willfully fails to pay trust fund taxes (income and FICA taxes withheld from employees’ pay) is 100% personally liable for the taxes, plus penalties and interest. In a recent case, an employee who managed 2 home healthcare businesses was found to be liable even though she didn’t own either company. She had the PIN numbers and passwords to access the electronic payment system for federal taxes, and to access the business’s bank account, and she knew that the taxes hadn’t been paid. The fact that she paid other creditors—rent, utilities, payroll—showed willfulness. #IdeaoftheDay