Employer Liability Under IRC 6672

Internal Revenue Code Section 6672 mandates an employer to withhold federal income taxes and social security taxes from employees’ wages. The employees are given a credit against their tax liability for taxes withheld whether the employer remits the funds to the government or not. The IRS can’t collect this tax from the employee even if the employer does not pay the tax to the government. To protect the government when the employer does not pay this tax, section 6672 of the Internal Revenue Code subjects all “responsible persons” for the withholding and payment of the taxes to a penalty equal to the amount of the taxes due where the employer failed to pay such taxes to the government. Section 6672 imposes the penalty on anyone who is required to collect, administer and pay over the tax and who willfully fails to do so. To be liable under Section 6672, the person must meet two requirements: 1- He/she must be “responsible person” 2- He must “willfully” fail to pay over the taxes due

PEO7.com 23945 Calabasas Rd. Suite 106, Calabasas, CA 91302 818-222-4572 cs@peo7.com
SiteMap | Home | Exploring the Possibilities | What is Employee Leasing | Why use a Peo | Free Advice | Benefits to Employees
Responsibilities of PEO | Benefit Package | HR Management | Pre-Employment Screening | The Issue of Control
Future of PEO | Request For Proposal (RFP) Contact Us | Peo Resources | Terms of Service | FAQ