Missouri Lawyers Weekly interviewed Patrick Murphy in an article entitled, “Consequences await tax scofflaws.”
When you don’t pay taxes, the Internal Revenue Service and state look at it as if you’re holding their money on loan. And they charge big-time interest and penalties.
The late-payment interest rate for the IRS is 4 percent. On top of that, there is a penalty for failure to pay -.5 percent for each month the tax is not paid in full, says Patrick Murphy, a tax attorney and CPA at Danna McKitrick in St. Louis.
“While these amounts may not sound like much, it really does add up quickly,” Murphy says. “And I have seen numerous occasions where a taxpayer actually owes as much in interest and penalties as they owe in actual taxes.”
“Another area where people get into trouble is when people don’t remit payroll taxes when they are due: They spend it,” Murphy says. “It doesn’t affect the paralegal or the receptionist, but the owners of the firm can be held personally liable.”
Read news story… Missouri Lawyers Media (Dolan Media Newswire)