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Earning profits online is a remarkably popular concept these days. Most people are very enthusiastic about earning profits online as this requires hardly any effort and the return is truly good. There are lots of ways to earn money online. However, the most used method to earn money online is affiliated marketing. Affiliated marketing is quite simply a form of marketing scheme. Most famous online shops and brands use this type of marketing to market their products. In affiliated marketing, you will publish advertisements of different products and services provided by these online shopping giants in your website. You are certain to get paid once a customer purchases something or service through your website. So, the more customers you can get, the more income you can make. 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The IRS is trusting you, the business enterprise owner to produce these payments as prescribed by law. The situation arises once the employer withholds the taxes from the employee's paycheck but then doesn't send the payments to the IRS or other local taxing authority. The trust fund taxes refer only to the taxes withheld from the employee's paycheck which includes the federal withholding taxes, and one-half of the social security and medicare taxes. Many business owners who borrow from their staff paychecks wind up not paying anything to the IRS and figure no harm. They mistakenly belief that since they will be incorporated then the IRS can only pursue the business enterprise itself. If the business enterprise owner includes a struggling business, they could simply close-up shop and walk away. But many years later the business enterprise owner may be given a notice from the IRS. This notice will state that the IRS has determined that the business enterprise owner is just a responsible person and is personally liable for tens and thousands of dollars in back taxes with interest and penalties. If you may not pay immediately then they'll file a lien against your own personal property including your house. How can the IRS due this? When payroll taxes are owed to the IRS, they'll check out see who was simply accountable for the reporting and payment of the payroll taxes. The responsible person in the eyes of the IRS can be anyone or several people. It could be the shareholder, or president of the company or the bookkeeper of the company. The IRS may hold you out to function as responsible person if you'd everyday control within the finances of the company or if you decided what bills to pay in what order. If you'd check singing authority for the company or even though you simply approved the payroll or employees time sheets. The determination on whether a person is just a responsible person is just a among fact and the IRS will apply some criteria to determine who might be a responsible person. If this happens for your requirements then the initial type of defense would be to assert that you will be not actually a responsible person because of several factual reasons. Maybe you'd the title of Chief Financial Officer but no real authority or power. Perhaps you became the bookkeeper after the full time the taxes were withheld and never paid. However all this depends upon a variety of facts that really must be ascertained after the fact. In the case that you should not escape being labeled a responsible person, then you might declare that you willfully didn't pay the taxes. There's no exact definition as to whether a responsible person was willful or not but some of the factors that the IRS may look at are: (1) Whether you knew that the company was delinquent in paying its payroll taxes. (2) Whether you acted recklessly or with gross neglect. For example did you pay yourself a big bonus as opposed to paying the payroll taxes. Another defense to the assessment of the Trust Fund Recovery would be to assert that during the time you were the responsible person you exercised reasonable care in your duties. Again the IRS doesn't have strict definition as to what reasonable care may be and this depends upon the factual situation. However a good example will be a bookkeeper who prepares the payroll and gives most of the checks to the company president but the company president doesn't pay the payroll taxes. In this instance it could be successfully argued that the bookkeeper acted with reasonable care. |