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If I'm reading your question correctly, you owe both back payroll taxes and also other back taxes....is that correct?
Hello. Your welcome. Thanks for working on my answer.
No problem........I'm happy to help
They are all related to payroll. Some is the money that the company pays and the other is the amounts removed from the pay of employees - that is the part I am referring to as the 'trust fund' portion.
Please explain the following "the amounts removed from the pay of the employees" are speaking about their portion of SS and medicare?
The IRS feels very strongly about trust fund payments, since this money does not technically belong to you (or the company)
This money belongs to the employees.
Yes, the portion that is removed from their paycheck, that was to be sent in by the company when it paid the payroll taxes. My accountant called this the 'trust fund' portion of the taxes.
The IRS has an ordering process (meaning which order they will apply any money you send them) and trust fund monies are always first
So even if you wanted to pay what you owe in a different order, because these trust funds belong to the employees, they will be paid off first
Are you still here?
Ok, the accountant wasn't sure how it was applied and since were are personally responsible for the trust fund amounts we wanted to be sure that as we pay them off the payments are applied there first.
Yes - sorry typing.
Well, the IRS treats trust fund taxes as extremely important, which is why its they apply any money sent to that fund first. This is because the IRS still gave those employees the benefit of what had been reported in box 2 of their W2, Federal withholding, even though they didn't have the money yet from, you.
I hope that make sense and helps you
That makes sense. Just can't assume that when dealing with the government!
It does - thanks. I will let my accountant know your reply too.
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Sure - thanks.