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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2308
Experience:  Certified Public Accountant
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I am hoping you may be able to direct me to the right place.

Customer Question

I am hoping you may be able to direct me to the right place. I have received four notices from 2006 and 2007 for what the irs says is payroll taxes. I was a signer on payroll checks, however the owner of the company (I was not an owner) was responsible for filing the taxes. In fact I even assisted him getting a loan to pay for them, but he took the money and ran. Now the irs says I owe them over $20,000. Is there any way to dispute this?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: not at this time
Submitted: 1 year ago.
Category: Tax
Expert:  Mark Taylor replied 1 year ago.

Hi, my name is Mark. I will be happy to help you with your questions.

Expert:  Mark Taylor replied 1 year ago.

You mentioned that you signed the payroll checks. Did you also sign the payroll reports (941, 940, W-3)?

Expert:  Mark Taylor replied 1 year ago.

Is this the first notice that you received from the IRS?

Expert:  Mark Taylor replied 1 year ago.

Do you know if the forms 941 reports were timely filed for 2006 and 2007?

Expert:  Mark Taylor replied 1 year ago.

Have you been assessed a trust fund recovery penalty?

Customer: replied 1 year ago.
By directive of the owner of the company because he was not in the same state, yes I would file the previous quarterly payroll taxes.
They have been sending me letters since 2010 and I did have my wages garnished for a bit. I have been unemployed so they haven't been able to get anything.
The only thing I have received are the letters with CVL PEN CP71C
I have talked to the irs and they say cause I did sign the checks that I am responsible. And that they are going after the owner as well but he has avaided them.I basically got "screwed" by this guy and still have this. I am requesting a transcript to see what they have shown as action on the account and to verify the terms. I am looking into the statute of limitations as well
Expert:  Mark Taylor replied 1 year ago.

Do you know if the returns were timely filed? When did the IRS issue the Trust Fund Penalty to you. For 2006 payroll taxes they would have needed to assess the penalty by April 15, 2010.

The IRS is only able to collect on the taxes once So it is helpful if the owner paid the penalty (I know this is probably not the case).

Expert:  Mark Taylor replied 1 year ago.

The statute of limitation on the payroll taxes is 10 years (for collection purposes). This is based on the filing date. So assuming that the 2nd quarter of 2006 was timely filed by July 31, 2006. The statute for this period would have expired on July 31, 2016. The trust fund recovery penalty was probably assessed in 2009 or 2010. So the statute of limitation for the penalty would also be 10 years. This would expire in 2019 or 2020 (depending when it was assessed). It is possible that the statute would be extended if you applied for an installment agreement, offer in compromise, or a few other exceptions.

Expert:  Mark Taylor replied 1 year ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.