Form 8655

[Super Mom]

I do payroll for some companies and it's my understanding that all 941 deposits over 2500 per quarter must be electronically deposited. I looked at the form 8655 and that form scares me because it gives me signature authority on payroll forms. I understand that signature authority will make me personally liable for the payroll taxes if they don't pay them for whatever reason. But I don't know how to do this new requirement and not have possible personal liability, any thoughts?

[BHoffman]

I do payroll for some companies and it's my understanding that all 941 deposits over 2500 per quarter must be electronically deposited. I looked at the form 8655 and that form scares me because it gives me signature authority on payroll forms. I understand that signature authority will make me personally liable for the payroll taxes if they don't pay them for whatever reason. But I don't know how to do this new requirement and not have possible personal liability, any thoughts?

See chapter 11 in Pub 15 for electronic deposit requirements:

"Electronic deposit requirement. You must make electronic deposits of all depository taxes (such as employment tax, excise tax, and corporate income tax) using the Electronic Federal Tax Payment System (EFTPS) in 2010 if:

Your total deposits of depository taxes in 2008 were more than $200,000 or

You were required to use EFTPS in 2009 or any prior year."

Also, the fine print at the bottom of form 8655 says:

"Authorization Agreement
I understand that this agreement does not relieve me, as the taxpayer, of the responsibility to ensure that all tax returns are filed and that all deposits and payments are made. If line
15 is completed, the reporting agent named above is authorized to sign and file the return indicated, beginning with the quarter or year indicated. If any starting dates on line 16 are completed, the reporting agent named above is authorized to make deposits and payments beginning with the period indicated. Any authorization granted remains in effect until it is revoked by the taxpayer or reporting agent. I am authorizing the IRS to disclose otherwise confidential tax information to the reporting agent relating to the authority granted on line 15 and/or line 16, including disclosures required to process Form 8655. Disclosure authority is effective upon signature of taxpayer and IRS receipt of Form 8655. The authority granted on Form 8655 will not revoke any Power of Attorney (Form 2848) or Tax Information Authorization (Form 8821) in effect."

Hopes this helps.