Business owners with employees are required to deduct employment taxes from their employees' payroll.
This deducted tax, referred to as Trust Fund tax, is then paid to the Internal Revenue Service.
When a business owner cannot or does not adhere to this rule, a Trust Fund tax liability is created.
This is one form of tax that the Internal Revenue Service will definitely not overlook, no matter how long the debt has been outstanding.
The IRS will strongly enforce the Trust Fund tax and, even in bankruptcy, it is not cancelled.
For taxpayers hoping to get a tax relief here, there is, sad to say, no hope.
It has been reported by the IRS that millions of business owners owe nearly fifty billion dollars in payroll tax.
Given this figure, and given the IRS's determination to enforce this particular tax collection, the chance of a business owner getting a tax relief is nil and the likelihood of facing a lien, levy or some other kind of penalty is very high.
Two situations determine whether a businessperson or taxpayer has a Trust Fund Liability: 1.
That person was/is responsible for collecting or paying employment and income taxes or for paying collected excise taxes 2.
That person willfully failed to collect or carry out the tax obligations.
Business owners may be able to get tax relief on their personal tax liability.
According to the IRS, there may be circumstances in which a liability is not enforced.
These include: non-filing was an IRS error, natural disasters that destroyed the taxpayer's property or home, serious illness or death of an immediate family member, the taxpayer cannot reasonably get information to determine tax debt, failure by the Postal Service and others.
This deducted tax, referred to as Trust Fund tax, is then paid to the Internal Revenue Service.
When a business owner cannot or does not adhere to this rule, a Trust Fund tax liability is created.
This is one form of tax that the Internal Revenue Service will definitely not overlook, no matter how long the debt has been outstanding.
The IRS will strongly enforce the Trust Fund tax and, even in bankruptcy, it is not cancelled.
For taxpayers hoping to get a tax relief here, there is, sad to say, no hope.
It has been reported by the IRS that millions of business owners owe nearly fifty billion dollars in payroll tax.
Given this figure, and given the IRS's determination to enforce this particular tax collection, the chance of a business owner getting a tax relief is nil and the likelihood of facing a lien, levy or some other kind of penalty is very high.
Two situations determine whether a businessperson or taxpayer has a Trust Fund Liability: 1.
That person was/is responsible for collecting or paying employment and income taxes or for paying collected excise taxes 2.
That person willfully failed to collect or carry out the tax obligations.
Business owners may be able to get tax relief on their personal tax liability.
According to the IRS, there may be circumstances in which a liability is not enforced.
These include: non-filing was an IRS error, natural disasters that destroyed the taxpayer's property or home, serious illness or death of an immediate family member, the taxpayer cannot reasonably get information to determine tax debt, failure by the Postal Service and others.