QUESTION
Will my mother be protected from the IRS? How?
Asked on May 04th, 2015 on Taxation - Michigan
More details to this question:
My step father owns a business where my mother has worked for a few years. She processed the payroll checks but was never fully aware that she was also responsible for payroll taxes. Now the IRS is after that money. Is there any way that she can be protected?
2 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The main issue is whether she had the authority to write checks or otherwise make payments. If she had the authority, then the IRS reasons that she made a choice not to pay the taxes and will be personally liable. If she didn't have the authority, then the IRS can't pursue her for the taxes. The first thing the IRS will do is look at bank records and see if she was a signatory on the company's checking account .
Answered on May 05th, 2015 at 7:26 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Maybe, but she is certainly potentially liable. They both need to see, most probably separate, attorneys.
Answered on May 04th, 2015 at 5:29 PM