Always Pay Payroll Taxes First before you pay any other vendors, without exception. My client, after he signed the turnaround agreement, told me that he had a surprise for me. I shared with him that I hate surprises. He said that he owes the IRS $120,000 in payroll taxes. Again, I hate surprises!
I immediately went through the correspondence with the IRS. The Internal Revenue Service does not fool around when it comes to nonpayment of payroll taxes. They go for the throat of the owner and start squeezing tight. The owner of the company is PERSONALLY liable for any payroll tax debt to the IRS.
We offered to the IRS to stay current with payroll taxes, and pay a deposit of $20,000 towards the $120,000. Then the company would pay $5,000 monthly installments until the debt is satisfied. The offer was approved the next day. We paid the balance after the initial deposit in six months.
Never make the decision not to pay the IRS the company’s payroll taxes, they get cranky very quickly!
My name is Robert Curry, and I am an Author, CEO Coach, Keynote Speaker, and Turnaround Specialist. Over the past 20 years, I have worked with more than 70 companies taking their businesses from Loses to Profits.
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