When the IRS sees a business owner with a history of failure to remain compliant, in addition to seeking repayment of back taxes, they can set out on a path to preclude that owner from opening or operating additional businesses. This path leads to an injunction being sought by the Department of Justice (‘DOJ’) to preclude further business activities that may result in additional taxes going unpaid. In doing this, the IRS looks to lessen the damage that may come from schemes promoting tax fraud. Unfortunately, many who have simply run into tough times and have fallen behind on their taxes can become the target of one of these injunctions.
When an injunction is put into place and subsequently violated, the failure to comply is pursued with criminal prosecutions for contempt of the injunction order as well as civil remedies which can involve the forced closure of a business.
“Lead the people with administrative injunctions and put them in their place with penal law, and they will avoid punishments but will be without a sense of shame. Lead them with excellence and put them in their place through roles and ritual practices, and in addition to developing a sense of shame, will order themselves harmoniously.” –Confucius
Shame is a word that no one wants to be associated with. When we feel shame, we reminisce on our failures that lead to the shame. Often times, shame follows the failure. Confucius tells us that by developing a sense of our own shame, we can allow the shame to precede the failure and subsequent punishment that may come from that failure and instill practices that prevent the failure from coming about.
The IRS is out to prevent future failures by way of injunctions. We are here to prevent future failures by helping our clients develop the processes necessary to remain compliant and show the IRS that an injunction is not necessary. We encourage the use of a payroll company for all future filings to ensure that nothing falls behind. We partner with the largest payroll providers in the country to streamline implementation and allow you to stay focused on your day to day business operations. Additionally, we work the the IRS to make sure that all deposits paid timely are communicated to revenue officers handling the case, so they do not find the need to recommend an injunction to the DOJ.
If your business has fallen behind and you are not sure how to address the liability, contact us today. Once our representation is in place, we will work diligently to prevent the need for an injunction to be sought and get your business back into compliance with the taxing authorities.