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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1699
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I have a question related to unpaid IRS payroll taxes. Our

Resolved Question:

I have a question related to unpaid IRS payroll taxes. Our company owes back payroll taxes to the IRS. As we are making our payments to catch up on the back taxes can we designate that the payments to go towards funding the trust fund portion of the back taxes?
Submitted: 1 year ago.
Category: Tax
Expert:  Anne replied 1 year ago.

Anne :

HI

Anne :

Thank you for using justanswer.

Anne :

If I'm reading your question correctly, you owe both back payroll taxes and also other back taxes....is that correct?

Customer:

Hello. Your welcome. Thanks for working on my answer.

Anne :

No problem........I'm happy to help

Customer:

Yes. Both.

Customer:

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.

Anne :

Please explain the following "the amounts removed from the pay of the employees" are speaking about their portion of SS and medicare?

Anne :

The IRS feels very strongly about trust fund payments, since this money does not technically belong to you (or the company)

Anne :

This money belongs to the employees.

Customer:

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.

Anne :

The IRS has an ordering process (meaning which order they will apply any money you send them) and trust fund monies are always first

Anne :

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

Anne :

Are you still here?

Customer:

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.

Customer:

Yes - sorry typing.

Anne :

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.

Anne :

I hope that make sense and helps you

Customer:

That makes sense. Just can't assume that when dealing with the government!

Customer:

It does - thanks. I will let my accountant know your reply too.

Anne :

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.




Anne :

Please be sure to let me know if you have any further questions.

Customer:

Sure - thanks.

Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1699
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Anne and 4 other Tax Specialists are ready to help you
Expert:  Anne replied 1 year ago.
Thank you for the accept and the positive rating.

Please feel free to ask for me by name if I can help you in the future.

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