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None of this is fraud. If the owner is pocketing the money that were earmarked for payroll taxes, IRS/State can go after them personally to collect the money. But, who's to say that even if this is the issue that the reason is simply lack of liquidity, and not the owner pocketing all of it?
99% of the time this happens is simply because the business has no cash, and is trying to stay afloat. Not some nefarious dealings on the owner(s) part.
Of course the IRS & State will go after them, but it does happen. I would call it nefarious. It is still theft, just becasue someone has a cash flow problem, or is going out of business, it does not give them the right to cheat other people. If they are so desperate as to cheat on payroll taxes, they need to shut down.
Of course the IRS & State will go after them, but it does happen. I would call it nefarious. It is still theft, just becasue someone has a cash flow problem, or is going out of business, it does not give them the right to cheat other people. If they are so desperate as to cheat on payroll taxes, they need to shut down.
Not to mention, if the IRS does go after them, and the employer owes the OP money, he is not going to get it.
To just sit by and hope this is coincidental is strange to me.
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Quote:
Originally Posted by convextech
You seem to be so nonchalant about this. Do you not have any bills to pay?
If it were me, I'd be moving heaven and earth to find out what the heck is going on with my money.
Yeah, I don't get this either. She seems worried, but at the same time isn't taking an initiative to actually find out why, and being a part owner to boot.
Location: In a city within a state where politicians come to get their PHDs in Corruption
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Quote:
Originally Posted by evening sun
Of course the IRS & State will go after them, but it does happen. I would call it nefarious. It is still theft, just becasue someone has a cash flow problem, or is going out of business, it does not give them the right to cheat other people. If they are so desperate as to cheat on payroll taxes, they need to shut down.
Most small businesses are either unprofitable and/or have cash issues in any given year. Some are just better at disguising it. With most of the clients I work with, I constantly ask myself how they stay afloat, but some do, often for many years, even decades.
Most small businesses are either unprofitable and/or have cash issues in any given year. Some are just better at disguising it. With most of the clients I work with, I constantly ask myself how they stay afloat, but some do, often for many years, even decades.
I understand, first hand, how hard it is to stay afloat, but if a person can only do so, by scamming on taxes, imo, it is time to finish. They need to get a line of credit or a small business loan, not cheat people.
Today I get a message in my work email from an investment firm that provides capital to businesses and 'you might have been working on obtaining additional working capital for your business over the past couple months.' Hmm, not that I know of and I have received maybe two or three pieces of spam in four years with this email accounts. I never have received this type of email before.
Curious I reply asking how the firm got a hold of my email address as I don't use it in public or for personal reasons. They replied that they received it from a broker we have been working with. News to me, but this might explain lots of things.
My company is a LLC and I own a small, small part of it. So did a broker get emails of all us that own part of the company for the prospects of receiving funding or someone pulling a joke?
Oh oh. The IRS could come after you, personally, for any deficiencies. Sever your relationship NOW
Yeah, I don't get this either. She seems worried, but at the same time isn't taking an initiative to actually find out why, and being a part owner to boot.
I actually am quite worried and not acting nonchalant. I expressed my worry to my wife and she is concerned but she thinks I should give my boss the benefit of the doubt but says the decision is up to me while weighing the flexibility work environment I currently have. I guess its hard to tell worrying and panic via keyboard. Just sharing my experience looking for input, not asking for direct help on what to do. So I have been getting my affairs in order, so to speak.
The very first time we had a late payroll I was worried because never in fifteen years at previous employers ever had a blip in the paycheck department and now this. Plus I have a family to support. My boss said it was ADP's problem and I accepted that because I trusted her. The next time it happened I was actually the one to report it to my boss that no one was paid yet and I wanted to know why (If anything, my co-workers seem to not care that much about all this). Blame went to ADP again. The third time I actually talked face to face with her and demanded answers and expressed my concern and she assured me no money problems and went after ADP and said we were treated like garbage because we were a small company. She promised to release email conversations with ADP about the payroll issue but never has. I also tried contacting ADP myself but they wouldn't talk to me.
I don't have visibility into company finances even though I have expressed interest and have been told all is well. XYZ was our most profitable year, etc. The only time I see numbers is on my K-1 Schedule.
Last edited by captainmidnight; 08-24-2017 at 01:11 PM..
Oh oh. The IRS could come after you, personally, for any deficiencies. Sever your relationship NOW
Not necessarily true. This is getting into lawyer territory, but members of an LLC are not personally liable for Company debts. They can lose their entire capital contribution, and if they sign a personal guarantee all bets are off, but personal assets are generally shielded.
There may be an exception for the IRS, I don't know. When I was a member of an LLC, the IRS got the first check we cut every month. I wasn't going to fool with that.
Location: In a city within a state where politicians come to get their PHDs in Corruption
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Quote:
Originally Posted by fishbrains
Not necessarily true. This is getting into lawyer territory, but members of an LLC are not personally liable for Company debts. They can lose their entire capital contribution, and if they sign a personal guarantee all bets are off, but personal assets are generally shielded.
There may be an exception for the IRS, I don't know. When I was a member of an LLC, the IRS got the first check we cut every month. I wasn't going to fool with that.
For a certain portion of payroll taxes (social security and medicare--I think), IRS can go after each member of an LLC or any officer of a Corporation.
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