What’s this I hear about Our Place?
 

Someone told me Our Place in Laconia is closed with a “for lease” sign on it. It has always been a great breakfast spot, so we are very sorry to see it closed. [emoji20]


Sent from my iPhone using Winnipesaukee Forum mobile app

True, for-lease signs on both halves of the building and nobody but two cleaning trucks there this morning.

taxes
 

evidently, they neglected to pay their payroll taxes.

Yikes! Hopefully, the IRS will settle with just getting their money. I know a guy who's now spending 5 years as their "guest" for that offense.

Yikes is right
 

Do not ever mess with the IRS!

Payroll tax is a much different offense than income, corporate or most other types of tax. The IRS is much more willing to work something out for personal, income and other types of tax but not payroll.

This is because most of the employer's payroll tax that is due to the IRS has been withheld from the employee's paycheck and thus in effect by not paying the payroll tax you are stealing from the employee and the IRS

(unless they didn't withhold anything from the employee's checks, Joey.) Most likely they did but who knows.

Still the employees fica had to be deducted


Sent from my iPhone using Winnipesaukee Forum mobile app

Nothing had to be deducted. Unlikely because of all the employees they must have needed, but they could have paid them under the table, no? I don't know how people think they can get away with that but they do it. Plus they can't expense wages if they pay under the table. How does it make sense? Unless they don't report their income? Just too damn risky if you ask me.

Underground Economy
 

Businesses who pay their workers in cash avoid having to pay their share of payroll taxes--7.65% of employee salary up to an annual ceiling. They also don't pay unemployment insurance or workers compensation premiums. This can cut their payroll costs by 20% to 30%.

Owners of cash-intensive businesses often pocket cash payments from customers to avoid having to pay sales taxes and/or income taxes. Many will offer discounts to customers who pay by cash instead of credit cards. It has been estimated that owners of small businesses with substantial cash revenue fail to pay about half their taxes.

The worldwide underground economy amounts to $2 trillion per year. That's two-thousand billion dollars upon which no taxes are paid to governments around the world. The IRS says that the United States lost $500 billion in taxes in 2012 because of unreported income.

I think your stretching this a bit too far. More than likely they deducted FICA and Withholding but never paid it to the IRS on there quarterly 941 which as I stated they take much more seriously than just not paying income, corporate or other types of asses tax and not those withheld from employees

I do agree with you Joey, most likely that is what they did. Just figured I would spice up the conversation. :)

It amazes me what people think the IRS will ignore. A former associate issued W-2s that only showed wages and withholding up until July. He explained that since July, he had been making personal loans to the employees, which carried no interest nor a repayment date. And everyone knows you don't pay any tax on loans. He had many other theories on tax law. Sixteen of them earned him indictments. To my benefit, thanks to the extensive investigation, I now have several friends high up in the IRS, and the US District Attorney recognizes me on the street and says "Hi". [I hope that's a good thing.]

Any Proof
 

It doesn't seem proper to speculate about a small business's tax status without any proof or inside knowledge of the situation. I see a thread here that is heavy on speculation and light on facts.

IRS debt is public knowledge and the fact is the entity does owe payroll tax (so this is not speculation). A search easily reveals this information. As far as the remainder of the thread, it is a discussion about the IRS and tax liability nothing really to do with the business in question except that thru personal experience as a CPA I can tell you that the IRS seeks payment of payroll taxes more aggressively than most any other type of tax.

I noticed the "for lease" signs are gone. Anyone know who/what is going in there?

they looked like they could have been open today, but they were not. Hours were still hanging on the door, not sure if that's new or if they never took them down...