Strategy for Paying Late Employment Taxes

Strategy For Paying Late Employment Taxes

How does the IRS apply partial payments when a trust fund penalty has been assessed?  Can the IRS apply payments to the trust fund portion of the employment taxes or must it apply the payment to the non-trust fund penalty portions? Trust Fund & Non-Trust Fund Tax Employers are generally required to withhold employment taxes…

Better than a Soap Opera? Trust Fund Tax Disputes

Better Than A Soap Opera? Trust Fund Tax Disputes

Businesses often succumb to the temptation to use taxes withheld from employees wages to manage cash flow problems. These “government loans” can prove to be quite costly. Hart v. Commissioner, 19120-12 provides an example. Facts & Procedural History The taxpayer worked for a real estate firm. The firm did not pay its payroll taxes. The…