Published On: Thu, Jul 26th, 2018

Always Pay the Company’s Payroll Taxes First!

Always pay the company’s payroll taxes first! Especially before you pay any other vendors, without exception.

Always pay the company’s payroll taxes first! My client, after he signed the turnaround agreement, told me that he had a surprise for me. I shared with him that I hate surprises. He said that he owes the IRS $120,000 in payroll taxes.  Again, I hate surprises!

I immediately went through the correspondence with the IRS. The Internal Revenue Service does not fool around when it comes to nonpayment of payroll taxes. They just go for the throat of the owner and start squeezing tight. The owner of the company is PERSONALLY liable for any payroll tax debt to the IRS.

We offered to the IRS to stay current with payroll taxes, and  pay a deposit of $20,000 towards the $120,000. Then the company would pay $5,000 monthly installments until the debt is paid. The offer was approved the next day.  We paid the balance after the initial deposit in six months.

Never make the decision not to pay the IRS the company’s payroll taxes, they get cranky very quickly!

Please read some of my other articles on improving your hiring skills: Invest Time and Money to Reduce Hiring Mistakes! and Listen More During an Interview, and Talk Less!

Robert “Bob” Curry has turned around more than 70 businesses, both large corporations, and small businesses. He comes to your place of business or the site of your choice. The first consultation, of course, is at no charge. Bob Curry has a stellar track record of professional success and excellent formal education, including Masters Degrees in Taxation.

Bob published his first book “From Red to Black – A Business Turnaround – The Matter of ABC Shutters” that is on sale at Amazon.com.

Please read all my blogs at Fortlauderdaleceo.com.

See the website Redtoblackbooks.com.

If you would like to comment on this article, my email address is Bob@ceorsc.com.

 

About the Author

 – Robert S. Curry is an author, seasoned business coach, and successful turnaround specialist. Earlier in his career, he served as President and CEO of three different companies, the largest with annual sales of more than $1 billion dollars – all which experienced successful turnarounds under his management. In the late 1990s, he started his turnaround consulting firm, and for the past twenty years, he has turned around more than seventy distressed companies in many different industries helping each to establish a strong management team and become profitable. He published his first book: From Red to Black – A Business Turnaround – The Matter of ABC Shutters. He resides in Fort Lauderdale, Florida, with his wife, Esther.

About the Author

- Robert S. Curry is an author, seasoned business coach, and successful turnaround specialist. Earlier in his career, he served as President and CEO of three different companies, the largest with annual sales of more than $1 billion dollars - all which experienced successful turnarounds under his management. In the late 1990s, he started his turnaround consulting firm, and for the past twenty years, he has turned around more than seventy distressed companies in many different industries helping each to establish a strong management team and become profitable. He published his first book: From Red to Black – A Business Turnaround – The Matter of ABC Shutters. He resides in Fort Lauderdale, Florida, with his wife, Esther.

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