941 Taxes - Can they follow you when the business closes?

The obvious answer is YES, but how are they assessed? And how often do they carry over to the actual taxpayer?

IF YOU ARE A CORPORATION and ring up a 941 debt, the only way the debt will carry to you personally is if the IRS assesses the "TRUST FUND" portion against you (this is about 55% of the 941 debt). We find that this ONLY occurs when a Revenue Officer is assigned to your case. If there is no one assigned to you, maybe that's your opportunity to close out your E.I.N# before a Rev. Officer is assigned?!

IF YOU ARE A SOLE PROPRIETOR and ring up a 941 debt, the only way the debt will carry to you personally is if the IRS places it against your Social Security #. I don't know the actual method how they do the assessment in sole prop cases, but I know that a "live IRS body" has to make the assessment - and attach against your Social. It is pretty uncommon however in my experience that someone does NOT get 941s in a sole prop case assessed against them personally. But if you are NOT in collections and NO Rev. Officer is assigned , there is a chance that you MAY NOT!

If you are a business that has gotten behind on 941's, sole prop or corp, give me a call and we can analyze your options - 1-866-525-7302, Monday to Friday, 8am to 5pm, Pacific Standard Time.