What are Payroll (941) Taxes?

Information for Employers and Business Owners

Per normal business operations, withholding Social Security, Medicare, and Income Tax from your employees' wages is expected. These taxes are reported quarterly with the IRS 941 tax form. These are considered trust fund taxes because you hold these funds until they are reported and paid to the IRS. You must also annually file a 940 return. Understandably, there are serious consequences to withholding any of these funds in time or at all.

Trust Fund Recovery Penalty Statute

In an attempt to encourage prompt payroll tax payments, the Trust Fund Recovery Penalty Statute was put into place. This allows the IRS to transfer the tax liability from a company to an individual or individuals. Essentially, if you are responsible for your company's payroll and its taxes, you could be facing serious consequences for withholding any of the funds.

Some of the consequences associated with payroll tax penalties can include:

  • Attempted collection of the funds owed
  • Shut down of business and assets sold
  • Federal criminal charges

If you are unsure whether you could be subject to the Trust Fund Recovery Penalty Statute, consider the following:

  • Was or am I responsible for collecting payroll taxes?
  • Was or am I the one responsible for sending the trust fund taxes to the IRS?
  • Did I actually fail to send in any or all of the trust fund taxes in time or at all?

Being penalized for your payroll taxes may not be exclusive to paying them and doing so in a timely manner. When this happens, you need an experienced and knowledgeable tax lawyer in Oklahoma City.

Contact our Oklahoma City tax attorney for the assistance you need!

Call an attorney with over 25 years of experience. Our firm has successfully handled hundreds of cases, and we believe our knowledge and personal attention can help you next. When you call our Oklahoma City tax lawyer, you speak with Ms. Carver directly. You can trust that we are a firm located in Oklahoma City, not at the end of some random 1-800 number.

Contact The Carver Law Office, PLLC today at (405) 256-2619 for more information.

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