Who bears liability if my business partner hired his bookkeeper and accountant for our company but taxes were not filed?

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Who bears liability if my business partner hired his bookkeeper and accountant for our company but taxes were not filed?

I had set up company from day one with a payroll service. After the bookkeeper took over, he talked my partner in to saving the company $100 a month by letting the bookkeeper do payroll in house. My partner agreed, and assured me with his personel gurantee, “that if the bookkeeper isn’t doing something correctly, the accountant will catch it.” After 2 years, we found out the bookkeeper was not paying any federal taxes for payroll. He paid everything else, just not the federal portion. My partner paid all taxes. Can I sue my partner, bookkeeper and accountant, just on my behalf?

Asked on February 27, 2013 under Business Law, Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Based upon what you have written about it would be the bookkeeper who erred in the matter that you have written about who would be subject to a possible lawsuit by you. The damages would be the costs beyond what the tax amount would have been had such been paid.


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