Our employee responsible for payroll failed to file or pay payroll withholding taxes for about 18 months (2009 and 2010). Our Board of Directors or our GM was ever advised of this issue. The IRS was sending her correspondence abut the issue yet she was not providing management any information. We (management) were finally apprised of the situation after this employee resigned. We as a company now have a tax liability and lien on our property because of her negligence. Do we have any alternative of taking her to court in some sort of civil suit?
Answer
Not really. The company will be responsible for the taxes regardless of her actions. The company can either pursue a claim against her (and maybe collect on a judgment depending on if she has any assets) or just focus on the tax problem.
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