If taxes are not paid timely, and the IRS is not
notified why the taxes cannot be paid, the law requires that
enforcement action be taken, which could include the
following:
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Issuing a Notice of Levy on salary, bank accounts or property
(legally seize property to satisfy the tax debt) |
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Issuing a
Summons to the taxpayer or third parties to secure
information to prepare unfiled tax returns or determine
the taxpayer’s ability to pay |
Note: To collect delinquent tax
debts, certain federal payments (vendor, OPM, SSA, federal
salary, and federal employee travel) disbursed by the
Department of the Treasury, Financial Management Service
(FMS) may be subject to a 15 percent levy through the
Federal Payment Levy Program (FPLP). Taxpayers should
find out their appeal rights and how to resolve disputes.
Important Information for Employers
Employment taxes are:
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The amounts an employer should withhold from employees
for income, social security, and Medicare taxes (also
called withheld or trust fund taxes), plus
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The amount of social security tax and Medicare taxes an
employer pays on behalf of each employee
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Not following Federal tax deposit and filing requirements
can increase the amount of tax owed dramatically. Paying
employment taxes late, or not including payment with a
return if required, could result in additional penalties and
interest on any unpaid balance. Failure to Deposit (FTD)
penalties of up to 15 percent of the amount not deposited
may be charged, depending on how many days the payment is
late.
Unpaid employment taxes could cause additional collection
action to be taken. IRS could require an employer to:
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File and pay employment taxes monthly, rather than
quarterly, or
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Open a special bank account for the withheld amounts,
under penalty of prosecution.
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Enrolling in and making current tax deposits through the
Electronic Federal Tax Payment System (EFTPS) can help
employers stay up-to-date with their payment requirements.
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