Payroll tax problems can quickly become one of the most serious financial issues a business owner faces.

When a business withholds federal income tax, Social Security tax, and Medicare tax from employees, those funds include amounts that must be held and paid to the government. Falling behind on payroll tax obligations can expose a company to penalties, collection action, and potentially personal liability for certain individuals involved in the business.

Prendamano Tax Resolution & State Tax Advisory helps businesses and responsible individuals address payroll tax liabilities before the situation becomes more difficult.

From our Melville office, we assist clients throughout Long Island, including Huntington, Smithtown, Islip, Babylon, Nassau County, Suffolk County, Queens, Brooklyn, and New York City.

Payroll tax debt is particularly serious because the IRS may investigate whether individuals connected to the business should be personally assessed for certain unpaid trust fund taxes.

This can involve owners, officers, shareholders, employees, or others who had meaningful authority over the company’s finances and tax payments. The IRS looks at actual responsibility and control rather than job title alone.

That means what begins as a business tax problem may potentially become a personal tax problem.

The IRS may review who had authority over banking, payroll, creditor payments, and other financial decisions. If personal liability is proposed, the individual may have opportunities to challenge that determination depending on the circumstances and applicable deadlines.

At the business level, unresolved payroll taxes can also lead to liens, levies, and other collection actions.

The appropriate strategy begins by determining how much is owed, which payroll periods are involved, whether required returns have been filed, whether current tax deposits are being made, and whether the IRS has assigned the matter to a Revenue Officer.

Our goal is to address the immediate collection concerns while also helping the business regain compliance and develop a practical path forward.

If your company has fallen behind on payroll taxes or you have been contacted regarding potential personal liability, contact Prendamano Tax Resolution & State Tax Advisory to discuss your options.