941 Deposits/ Penalties

[BLACK BART]

http://www.thetaxadviser.com/issues/2015/oct/cpas-may-be-responsible-for-client-payroll-tax-penalties.html

Just tryin' to get a link to post.

 

[BLACK BART]

I was trying to edit the post but ran out of time. 

I found out how to get the link posted.

Now my complaint: Shaky client whose business may sink is going over the $2,500 "must deposit" limit next quarter.  Large payroll taxes will be piling up and I don't want to be the reporting agent (AKA "responsible person") for him.  Don't know if he's smart enough for me to show him how to make and pay the EFTSOB (whatever) payments, but $100 per month is walking out the door if he can't and I don't.  I'm certain I don't want to be between him and IRS on this.  Long ago I WAS for a different client and the agent was looking to me and the secretary for the money (we were on the checking account signature card and that's all it took for us to be on the hook). Luckily, the owner came through, but they made him bring $1,000 in cash to the local IRS office every three days until paid in full.  So, it was a close call and just luck that we got out of it.

What's your policy on this?

[NECPA in NEBRASKA]

I don't pay the deposits for my clients. I tell them when and how to do it. I have too many that have gotten behind and I will not be responsible for their problems. I am dropping payroll as fast as I can. I quit taking any new payroll clients three years ago.  I'm hoping that they will start going away by attrition. Some of them actually learned how to use their QuickBooks and made my life easier. 

[RitaB]

I do submit the deposits for clients.  I have not had any shaky clients for payroll tax.  I'm glad, cause I, too, hate to see income walk out the door.  And, you are correct, your client won't be able to do it, or will be habitually late and even worse off than if you had charged five times more.  Would like to hear from anybody who has been hit with the Trust Fund Recovery Penalty or had a close call.

[Bart]

I have not had the trust fund recovery penalty assessed against me but I was a signor on the bank account of a client whose payroll I processed and tax deposits i made.  They missed one tax deposit and I immediately sent a letter to the bank demanding my name be removed as a signor on the account.  I ask the bank for confirmation and I sent a copy of the letter to the client.

[ILLMAS]

I do EFTPS payments for my clients, so far only one didn't have any funds twice or three times I made the deposits, IRS sent their account to local agent to collect.