Discussion:10 Statute for IRS to collect vs trust fund liabilities
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Discussion Forum Index --> Basic Tax Questions --> 10 Statute for IRS to collect vs trust fund liabilities
Discussion Forum Index --> Tax Questions --> 10 Statute for IRS to collect vs trust fund liabilities
| 11 June 2009 | |
| Good day everyone, I have a small business owner that fell on hard times 10 years ago and failed to remit trust funds (payroll) before he went out of business. Can anyone tell me if this 10 year statute applies to these trust funds?
I have searched the code and cases and cant find an answer; I greatly appreciate your help! Regards, Sandy | |
| 11 June 2009 | |
| but you had better know when the 10 years begins. It probably isn't when you think it would start. | |
| 11 June 2009 | |
| The ordinary tax collection statute is 10 years from the date of assessment. This is the date on the first bill IRS sends to the taxpayer. It can be extended by a number of things; bankruptcy would be the most likely in your client's case.
IRS has to send an annual notice to every taxpayer with an outstanding balance due stating the current balance. If your client hasn't received one in the last year, the liability has dropped off or IRS does not have his current address. If IRS has filed a Notice of Federal Tax Lien your client should have a copy. It will show the assessment date. | |
| 11 June 2009 | |
| I was referring to the fact that 941 taxes aren't really 'assessed' the same way that 1040 taxes are.
and also that this might be a trust fund recovery penalty, which might have a different assessment date than the original 941 | |
| 11 June 2009 | |
| Get his Account Transcript and Wage and Income Transcript - the assessment date and or 6672 penalty date will show up, the earliest year available is 1999. | |
Mikex2e7n5 (talk|edits) said: | 29 June 2009 |
| If your client was a Schedule C filer, then he is personally liable for the total amount of taxes for 10 years after filing the 941's.
If your client ran an S-Corp, then the S-Corp is liable for 10 years after filing the 941's. If the S-Corp is no longer viable and the irs did not impose the trust fund penalty, then no worry. If he was an S-Corp, and irs imposed Sec 6672 before the 3 year statute for assessment based on filing the 941's, then he would be liable for the "trust fund" only for 10 years after the assessment of the "trust fund penalty" | |
