Compliance Alert: Be careful signing tax returns for your company....

Posted by Teresa Bockwoldt on July 1, 2010

I learned an interesting tidbit of information yesterday while at a new client...an Accounting Manager signed a payroll tax return she prepared for her company (which is common - executives do not typically sign this form).  Well, when the payment was not made promptly and the IRS came-a-calling...the IRS agent told the Accounting Manager that because she signed the return, she was liable for the amount - not her company.  So if the company decided to not pay the bill, the Accounting Manager would have to fork over the cash.

Lesson learned, your signature on a tax return is meaningful.  You could be personally liable for what you are signing....

Tags: compliance