How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask socrateaser Your Own Question

socrateaser
socrateaser, Lawyer
Category: Employment Law
Satisfied Customers: 34145
Experience:  Retired (mostly)
10097515
Type Your Employment Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

I am 64. CPA 27 years. Current employment 3 years. When

Resolved Question:

I am 64. CPA 27 years. Current employment 3 years. When I started co. was seriously in debt payroll tax FED & ST. Much paid since I started. I got letter from IRS for "reason for decrease to Fed Tax Deposit. Notice 784 says "we will decide who the responsible person or persons are who acted willfully. I do the accounting and payrolls. I can't sign checks or authorize any banking. The notice also says "any person who had responsib for certain aspects of bus and financial affairs may be responsible. This category may include accountants. I am a trained CPA with ethics, etc., it tells me to not associate or work for certain kinds of entities. My question is: should I leave now and go to the unemployment office and tell them why? What is my risk?
Submitted: 1 year ago.
Category: Employment Law
Expert:  socrateaser replied 1 year ago.
Hello,

If you provided accurate payroll records and your employer disregarded those records and failed to remit employment taxes as a result, then you are not liable.

If you willfully or with knowledge of falsity provided inaccurate records or supervised persons who provided inaccurate records, and your employer failed to remit as a result of your errors, then you could be held liable.

The fact that you had no signing authority or monetary control is evidence in your favor -- but it's not dispositive, because what matters is whether or not you knew what you were doing and that knowledge operated to create an insufficient remittance of employment taxes to the IRS.

I can't tell you what you should do, because we are dealing with something where it would be against your interests to disclose whether or not you knew what was happening concerning this matter. So please don't tell me what you knew or did not know.

That said, if I were without liability to the IRS, then I would not resign, because if I do, then the employer will have free reign to make me the "fall guy" for the errors, and I won't be there to defend myself. Better to be present and able to do some damage control if possible.

Hope this helps.
Customer: replied 1 year ago.
Relist: Incomplete answer.
I need to talk o someone who knows the IRS.
Expert:  socrateaser replied 1 year ago.

I'm pretty good at predicting legal outcomes, and I would really like to try to help you, if at all possible. I'm uncertain why you have rated my services as "poor" and I would appreciate an explanation, if nothing else.

Customer: replied 1 year ago.

I am an excellent accountant (CPA) from many years experience. I run payroll and pay 941 online (due weekly, weekly payroll) I have schedules that show taxes due (there so many) accurate to the penny. I show this to the owner weekly also. 11 employees. I file everything on time. The main reason he doesn't deposit taxes is because there is no money. I know exactly what is going on because I prepare the work, but I have no way to pay anything. I need to determine if my career, welfare and life is at risk to the point to where I need to leave, somehow. I don't think time is on my side here.

Expert:  socrateaser replied 1 year ago.
Okay, well I am an excellent lawyer, with a judicial temperament, and I am nearly infallable when it comes to predicting legal outcomes in advance of litigation (which tended to lose me a lot of clients, because clients don't want to hear that they're gonna lose, before the first paper is filed).

IRC 6672(a)
provides the elements of the offense concerning the Trust Fund Recovery Penalty. The key is truthful accounting or willfulness. You have just admitted to knowledge, but also that you truthfully accounted, and you had no authority to pay. Therefore, under those unque facts, you are not legally liable for the penalty.

Whether or not this level of scrutiny will be lost on the investigator is difficult to assess. As I'm sure you're aware, the IRS has no shortage of boneheads. Sometimes that can work to your advantage. But, were I the judge in Tax Court reviewing your facts, if everything you just said is verified as true, then you cannot be held liable, because you do not meet the required elements under the statute.

See also, Barton v. U.S., 988 F.2d 58 (U.S. Eighth Cir. 1993) ("when deciding to bring a § 6672 claim against a corporate officer, the government cannot reasonably rely on the officer's corporate status and mechanical functions if it is beyond dispute that the officer lacks tax-paying authority.").

I hope you will reconsider your previous rating of my services and provide a positive rating. Regardless, please let me know if I can be of further assistance.


socrateaser, Lawyer
Category: Employment Law
Satisfied Customers: 34145
Experience: Retired (mostly)
socrateaser and 9 other Employment Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I must thank you all for such a positive and knowledgeable Expert in your Employment Law category. She has provided much relief and answers for me in the midst of dealing with a case. I am totally pleased with her customer service and care. Mildred Washington, DC
< Last | Next >
  • I must thank you all for such a positive and knowledgeable Expert in your Employment Law category. She has provided much relief and answers for me in the midst of dealing with a case. I am totally pleased with her customer service and care. Mildred Washington, DC
  • Excellent direction from Socrateaser to help me preserve and pursue my rights as a proud American who has become unemployed in this messed-up economic downfall. Thank you Happy Customer Denver, CO
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    7759
    JD, BBA, recognized by ABA for excellence.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    7759
    JD, BBA, recognized by ABA for excellence.
  • http://ww2.justanswer.com/uploads/marshadjd/2009-6-1_194320_marshajd.jpg Marsha411JD's Avatar

    Marsha411JD

    Lawyer

    Satisfied Customers:

    10539
    Licensed Attorney with 27 yrs. exp in Employment Law
  • http://ww2.justanswer.com/uploads/NY/nyclawyer/2012-6-7_22011_photo66139201112041.64x64.jpg Infolawyer's Avatar

    Infolawyer

    Lawyer

    Satisfied Customers:

    9785
    Licensed attorney helping employers and employees.
  • http://ww2.justanswer.com/uploads/JA/jaccorpsesq/2011-11-13_21141_JAnewphoto.64x64.jpg Allen M., Esq.'s Avatar

    Allen M., Esq.

    Employment Lawyer

    Satisfied Customers:

    9429
    Employment/Labor Law Litigation
  • http://ww2.justanswer.com/uploads/MI/MILawyer/2011-2-28_0311_JBUprofile.64x64.jpg JB Umphrey's Avatar

    JB Umphrey

    Lawyer

    Satisfied Customers:

    6273
    Assisting employees and employers for over 14 years.
  • http://ww2.justanswer.com/uploads/TU/TUSA/2012-6-6_55219_test.64x64.png Thoreau (T-USA)'s Avatar

    Thoreau (T-USA)

    Lawyer

    Satisfied Customers:

    2469
    Attorney
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    2214
    I provide employment and discrimination law advice in my own practice.
 
 
 

Related Employment Law Questions