FAQ's

YES. You don’t have to be audited in order to be “caught” by the IRS.

If your employee files for unemployment benefits after her employment with you ends and you haven’t paid your state unemployment taxes, you will have to pay all the taxes and the state unemployment office will charge you interest and penalties and will report you to the IRS.

If your employee becomes disabled, cannot work and files for social security disability benefits and you haven’t paid your employee’s Social Security and Medicare taxes, you will have to pay the taxes and will be charged interest and penalties.

If your employee files a tax return with wages from your employment and you haven’t provided a W-2 to the employee, you will have to pay the taxes and the IRS will fine and penalize you.

If both parents work and your tax return doesn’t include any available tax credits, the IRS may become suspicious and audit your tax return.

If your employee retires and applies for Social Security and Medicare benefits and you haven’t paid your employee’s Social Security and Medicare taxes, you will have to pay the taxes and will be charged interest and penalties.

There is no statute of limitations for failing to report and pay federal payroll taxes.