What can if I failed to pay payroll taxes when I walked away from my company?
Full Question:
Answer:
Failure to file tax returns could cause you to lose your right to receive any refunds you may be entitled to under the statute of limitations. In cases where a tax return has not been filed, the IRS code provides most taxpayers with a limited three-year window of opportunity. If no tax return is filed to claim a refund within three years, the money becomes the property of the US Treasury Department. This is also true for applying credits, including overpayments of estimated or withholding taxes to other tax years that have been underpaid.
Failing to file can cause more problems than necessary, and can result in criminal prosecution. A person should file returns even if he cannot afford to pay the tax liability. The Internal Revenue Code, in most cases, allows a person to set up a payment plan. If you do not file, the Internal Revenue Service has the authority to file a substitute return on your behalf. The IRS files a “basic” return which does not include any of the additional exemptions or expenses you may be entitled to claim.
The IRS may agree to accept installment payments or an offer in compromise, which lets the taxpayer pay less than the full amount owed. I am prohibited from giving legal advice, this service provides information of a general legal nature. I suggest you contact a local tax professional who can review all the facts and documents involved.
