Photo by Molito66

You thought you were exempt from paying taxes because you got tax exempt status from the IRS?

Photo by Sage

Not paying payroll related taxes and fees can end in bankruptcy and personal liability. Know your fiduciary responsibility.

According to the General Accounting Office 1.6 million businesses owe $58 billion in unpaid payroll taxes.

25% of the unpaid total is from businesses with more than three years of unpaid payroll taxes.

In recent reports on the nonprofit companies there has been lots of discussion of the viability of many organizations to survive during an economic downturn.  The choices that a nonprofit has to make between services and expenses at times can be difficult.  It is important to note that while not paying bills to certain creditors may be an option, if Management and/or the Board make such a  decision not to pay taxes, you can become personally liable for said decision.  Consult an authority before taking such an action.  Late is one thing, not paying is another.

This entry was posted on Thursday, August 14th, 2008 at 12:01 am and is filed under Cash Flow Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.