My client hired a bookkeeper who embezzled all the payroll taxes. I have never dealt with a case like this before and think it’s over my head and feel they need a tax attorney. Does G and S take cases like this or should I refer to a local tax attorney? And not only did she steal the money she destroyed the Quickbook files. Another bookkeeper has been trying to recreate the 941s but in my opinion she’s lost, it’s an almost impossible task. Or should I just contact the IRS and see what they want to do? The taxpayer has the money to pay the taxes. Thanks.
Sop why can they not reconstruct the payroll? Its 12 people and the owner should know what they were paid. They also got W-2s. It may not be perfect but under the circumstances they should be able to get pretty close.
They reconstructed the payroll as best as they could and prepared W2’s and W3’s. Am I correct that they should leave the company alive then to pay the taxes and request penalty and interest abatement? Are there any hot tips I should be aware of? Or pitfalls? Thx
Terry, assuming they want to keep the company, then yes do exactly that – pay everything but the penalties and apply for abatement using the guilty plea as the basis – client was a victim. If they dont want to keep the company around then shut it down and wait for the TFRP assessments and deal with those as always.