Payroll Taxes Trust Funds – Settling For Less Than The Full Amount Of IRS
Payroll Taxes Trust Funds
IRS offer in compromise should establish on a per entity basis. An individual, corporation (form 1120, 1120S), partnership (form 1065), or trust fund (form 1041) are all legal entities. As such they may owe taxes of various characters.
Payroll Taxes Owed By An Individual Or Partnership
The IRS does not distinguish trust fund versus non-trust fund in this offer situation. A sole proprietor who owes payroll will include the withholding tax, Social Security, Medicare, the matching portion, and all interest and penalties in the offer.
The individual will include any separate trust fund liability from a corporation, trust etc. assessed to them.
The individual will include any separate 1040 tax liability. Jointly owed 1040 taxes will be on a separate 656 joint offer application.
Payroll Taxes Trust Funds Owed By A Trust Or Corporation
The IRS will add this to any other tax, interest, or penalties owed by the entity as part of an offer for that entity.
If you have a corporation, form 1120 or 1120S, or a trust that owes payroll taxes, I may be able to save you about one half, without filing an offer in compromise.
- If you are considering hiring us, call Joe Mastriano, CPA 713-774-4467.
- Think your IRS matter is handled? Think again!
- For your analysis, click here to email me.
