Can the IRS hold a past employee responsible for the company not paying taxes?

I was a former employee of a construction company and always told the boss that we did not have the funds for taxes and that he needed to put money in the bank. I was an acting office manager but never signed any documents stating I was in charge. I told the accountant that I could not pay the amount and I told the bookkeeper as well. I now have a letter from the IRS asking me to meet with them! I am terrified! I did do the payroll for all employees and told the owner, the accountant and the new bookkeeper that I did not have the funds to pay the taxes. I was fired in June of 08 and the IRS is asking for the taxes in the 1st quarter and the 2nd quarter of this year. I was not employed for the 2nd quarter and how could I be held responsible? All proof is at the old job site and on the computer! I wrote notes and notes stating that I had told the owner that there were no funds for taxes. I was just employee I did not hold shares nothing! I wasnt an officer I had nothing tieing me to his business other than I worked there.

Public Comments

1. If you had your own taxes taken out of your check, you are not liable for what a company does w/ their share.
2. Payroll taxes are serious business. If the IRS concludes that you had authority to make/not make the payroll deposits, yes, it can hold you liable.
3. If you did not have the fiduciary responsibility then you are not in trouble. If you can prove you notified the accountant and the boss of the shortfall, then you have covered your bases. I assume the IRS is trying to find out who to pursue for back taxes, interest, and penalties.
4. As somebody with some authority, the IRS may consider you "eligible" to be gone after for those withheld payroll taxes. They generally go after the owners (which I assume you are not) and some people that might have inside info. Their purpose in going after you is they are hoping that you will roll over and spill what you know about the people that actually did have control. So if you actually had no control over money, you have nothing to worry about, you are a pawn they are using to get the real thieves. Having said that, I still would not go in alone. You can sign a power of attorney to have somebody else go in your place: a CPA, an attorney, or an Enrolled Agent. An Enrolled Agent is a tax specialist who has passed the IRS tests allowing them to represent people at their audits. A CPA and attorney can also do the same by the nature of their jobs, but they usually charge a lot more. You can find an enrolled agent at http://www.naea.org/ or at an H&R Block office.
5. First of all, stop worrying! Did you commit fraud? Was the money there, and you diverted it into your own account? No? Then you have nothing to worry about. Just tell them the truth and you have nothing to be concerned about. If you have notes, all the better. Yes, I know this can be quite unnerving, but you;ll be fine once the meeting is over.
6. Just because the IRS wants to talk to you is no reason to panic. They are trying to get the facts.
7. Hire a representative (attorney, enrolled agent, CPA) to state your case to the IRS. Do not go to the meeting yourself, you are terrified. The IRS will pursue anyone who had any authority to make the payments. It is possible that your former boss is trying to pin this on you. So yes I would take this very seriously. FYI you were employed during the second quarter, which ends June 30.