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Taxation & Estate Planning

: IRS and the Law

IRS Financial Statements Revised - Traps Included!

By howardlevy

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For the first time in 4 years, the IRS revised the financial statements that are required to be used in collection cases.   There are several changes that are noteworthy, and to be careful with when answering.  On Form 433B, used to investigate businesses with IRS problems, the IRS asks who is responsible for depositing payroll taxes.  

The term “responsibility,” as it relates making payroll deposits, is a legal term, and answering yes can have the unintended effect of causing someone to have personal financial responsibility for payroll deposits that are not made.   Be careful with this:  What is ”responsible” in your mind may not be responsible under law.  Answering yes may be deemed by the IRS to be an admission. 

Full post as published by IRS and the Law on May 13, 2008 (boomark / email).

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