Price: $50 Print
Employers are required by federal law to withhold federal income taxes (FITW) and the employee portion of FICA (Social Security and Medicare) taxes when services are performed and wages paid. Employers that fail to withhold employee taxes become themselves liable for the outstanding amounts. Federal employment taxes employers are required to withhold from employees' wages are known as “trust fund taxes” because the employer is required to hold these monies in trust for the federal government. Under the Internal Revenue Code, employers are required to “collect, truthfully account for, and pay over” these taxes.
100 percent of taxes owed can be assessed against the person responsible for collecting them. The trust fund recovery penalty, IRC Section 6672, was developed as a means to ensure that the Internal Revenue Service receives the full amount of FITW and FICA due in situations where an employer has willfully failed to collect and/or remit these taxes. The trust fund penalty was formerly known as the “100 percent penalty” because 100 percent of the trust fund taxes owed can be assessed against the person or persons within an organization responsible for collecting and remitting the taxes. The trust fund recovery penalty can be assessed not only against the business itself but against responsible officers, company employees, and even third parties such as financial institutions and payroll vendors and their employees.
This strategic white paper reviews, in detail, who can be considered a responsible person under Section 6672 and under what conditions failure to withhold and/or remit employment taxes can be considered “willful.” Information is also provided on how IRS revenue agents apply the penalty against responsible persons in tax withholding failures and what avenues of relief are available for individuals against whom the penalty is levied.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)