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Corp withholdings taxes

Posted: Fri May 14, 2010 11:21 am
by Yahoo Bot

charset="windows-1251"
Yes
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Jim Selth
Sent: Friday, May 14, 2010 8:23 AM
To: cdcbaa@yahoogroups.com
Subject: RE: [cdcbaa] Corp withholdings taxes
Does the same analysis apply to EDD taxes not paid by the corporation?
James R. Selth
Weintraub & Selth, APC
12121 Wilshire Boulevard, Suite 1300
Los Angeles, California 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-Mail: jim@wsrlaw.net
NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT
OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY
LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION,
DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE
NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS
MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.

The post was migrated from Yahoo.

Corp withholdings taxes

Posted: Fri May 14, 2010 11:06 am
by Yahoo Bot

charset="windows-1251"
IRS has right to assess 100% penalty against responsible parties, officers,
etc. That "penalty" assessment is not dischargeable.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Shannon Doyle
Sent: Thursday, May 13, 2010 6:31 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Corp withholdings taxes
Client owns Corp. Corp owes 05 employee withholdings tax which it is
paying. However, my question is with respect to debtors personal liability
in Ch7. In reading 523(a)(1) in conjunction with 507(a)(8)(C), it appears
the taxes would be dischargeable if a timely return was filed and there was
no fraud. It cant be that easy. Can someone enlighten me as to what I am
missing here?
Shannon A. Doyle, Esq.
Borowitz & Clark, LLP
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791-1600
(626) 646-2555 Phone
(626) 332-8644 Facsimile
www.blclaw.com
charset="windows-1251"
Message
IRS has right to assess
100% penalty against responsible parties, officers, etc. That "penalty"
assessment is not dischargeable.


David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.

Corp withholdings taxes

Posted: Fri May 14, 2010 8:22 am
by Yahoo Bot

Does the same analysis apply to EDD taxes not paid by the corporation?
James R. Selth
Weintraub & Selth, APC
12121 Wilshire Boulevard, Suite 1300
Los Angeles, California 90025
Telephone: (310) 207-1494
Facsimile: (310) 442-0660
E-Mail: jim@wsrlaw.net
NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.

The post was migrated from Yahoo.

Corp withholdings taxes

Posted: Fri May 14, 2010 7:53 am
by Yahoo Bot

charset="ISO-8859-1"
Hello Shannon Heres how to navigate this.
507(a)(8)(C ) makes any any tax required to be . . . withheld a priority
tax. 523(a)(1)(A) makes all priority taxes non-dischargeable. Thats it.
523(a)(1)(B) also makes late-filed and non-filed taxes non-dischargeable;
this is a reason for non-dischargeability which is separate from the
priority tax reason. Note that the subparagraphs of 523(a)(1) are
disjunctive; meet the terms of any single subparagraph, and youve got a
non-dischargeable tax.
- John Faucher
On 5/14/10 7:22 AM, "Shannon Doyle" wrote:
>
>
>
>
>
> Thank you John. I believe the taxes are not dischargeable; however I am still
> thrown off by 523(a)(1), which says taxes of this nature (under 507(a)(8) the
> employee withholdings) are not dischargeable as to returns that are not filed,
> or filed late and within 2 years of filing, or fraudulent. That seems to say
> if the return was filed timely with no fraud the tax is dischargeable. Is the
> fact that taxes were not withheld considered fraud? Actually in my case the
> taxes were withheld but went to other expenses of the business so this could
> the piece of the analysis I am missing that renders them dischargeable
>
>
> Shannon A. Doyle, Esq.
> Borowitz & Clark, LLP
> 100 N. Barranca Ave., Ste. 250
> West Covina, CA 91791-1600
> (626) 646-2555 Phone
> (626) 332-8644 Fax
> sdoyle@blclaw.com
>
>
John
> Faucher
> Sent: Thursday, May 13, 2010 10:17 PM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Corp withholdings taxes
>
>
>
> Youre correct, its not that easy. Half of the Form 941 tax liability for
> the corporation is the corporations contribution to the employees social
> security payments, and half is the employees contribution which has been
> withheld from his paycheck. That half thats been withheld is held by the
> corporation in trust, and is referred to as the trust fund taxes. Any
> individual who is responsible for paying those taxes (owner, president, CFO,
> secretary with check-signing authority) has a personal non-dischargeable
> liability see 507(a)(8), whichever subsection refers to taxes withheld on
> behalf of another. You can never discharge them; the only way to get rid of
> them is through offer-in-compromise or long years of payment.
>
> In 10 years experience at IRS, I saw that these taxes are the most strictly
> enforced; revenue officers see failure to pay these taxes as morally
> equivalent to grand theft, and will treat debtors as not-yet-convicted
> criminals. Most corporations which get behind on these taxes get shut down by
> the IRS; arguments that we need the business to stay open so the IRS can
> collect more fall on deaf ears, because the ROs see themselves as law
> enforcement rather than collection officers here.
>
> - John D. Faucher
>
>
> On 5/13/10 6:31 PM, "Shannon Doyle" wrote:
>>
>>
>>
>>
>>
>>
>> Client owns Corp. Corp owes 05 employee withholdings tax which it is paying.
>> However, my question is with respect to debtors personal liability in Ch7.
>> In reading 523(a)(1) in conjunction with 507(a)(8)(C), it appears the taxes
>> would be dischargeable if a timely return was filed and there was no fraud.
>> It cant be that easy. Can someone enlighten me as to what I am missing here?
>>
>>
>> Shannon A. Doyle, Esq.
>>
>> Borowitz & Clark, LLP
>>
>> 100 N. Barranca Avenue, Suite 250
>>
>> West Covina, CA 91791-1600
>>
>> (626) 646-2555 Phone
>>
>> (626) 332-8644 Facsimile
>>
>> www.blclaw.com
>>
>>
>
>
>
>
>>> - John D. Faucher
charset="ISO-8859-1"
Re: [cdcbaa] Corp withholdings taxes
Hello Shannon – Here’s how to navigate this.

The post was migrated from Yahoo.

Corp withholdings taxes

Posted: Fri May 14, 2010 7:25 am
by Yahoo Bot

I meant to say that renders the taxes non-dischargeable here...
Shannon A. Doyle, Esq.
Borowitz & Clark, LLP
100 N. Barranca Ave., Ste. 250
West Covina, CA 91791-1600
(626) 646-2555 Phone
(626) 332-8644 Fax
sdoyle@blclaw.com

The post was migrated from Yahoo.

Corp withholdings taxes

Posted: Fri May 14, 2010 7:22 am
by Yahoo Bot

Thank you John. I believe the taxes are not dischargeable; however I am
still thrown off by 523(a)(1), which says taxes of this nature (under
507(a)(8) the employee withholdings) are not dischargeable as to returns
that are not filed, or filed late and within 2 years of filing, or
fraudulent. That seems to say if the return was filed timely with no
fraud the tax is dischargeable. Is the fact that taxes were not
withheld considered "fraud"? Actually in my case the taxes were withheld
but went to other expenses of the business so this could the piece of
the analysis I am missing that renders them dischargeable
Shannon A. Doyle, Esq.
Borowitz & Clark, LLP
100 N. Barranca Ave., Ste. 250
West Covina, CA 91791-1600
(626) 646-2555 Phone
(626) 332-8644 Fax
sdoyle@blclaw.com

The post was migrated from Yahoo.

Corp withholdings taxes

Posted: Thu May 13, 2010 10:16 pm
by Yahoo Bot

charset="ISO-8859-1"
Youre correct, its not that easy. Half of the Form 941 tax liability for
the corporation is the corporations contribution to the employees social
security payments, and half is the employees contribution which has been
withheld from his paycheck. That half thats been withheld is held by the
corporation in trust, and is referred to as the trust fund taxes. Any
individual who is responsible for paying those taxes (owner, president, CFO,
secretary with check-signing authority) has a personal non-dischargeable
liability see 507(a)(8), whichever subsection refers to taxes withheld on
behalf of another. You can never discharge them; the only way to get rid of
them is through offer-in-compromise or long years of payment.
In 10 years experience at IRS, I saw that these taxes are the most strictly
enforced; revenue officers see failure to pay these taxes as morally
equivalent to grand theft, and will treat debtors as not-yet-convicted
criminals. Most corporations which get behind on these taxes get shut down
by the IRS; arguments that we need the business to stay open so the IRS can
collect more fall on deaf ears, because the ROs see themselves as law
enforcement rather than collection officers here.
- John D. Faucher
On 5/13/10 6:31 PM, "Shannon Doyle" wrote:
>
>
>
>
>
> Client owns Corp. Corp owes 05 employee withholdings tax which it is paying.
> However, my question is with respect to debtors personal liability in Ch7. In
> reading 523(a)(1) in conjunction with 507(a)(8)(C), it appears the taxes would
> be dischargeable if a timely return was filed and there was no fraud. It cant
> be that easy. Can someone enlighten me as to what I am missing here?
>
>
> Shannon A. Doyle, Esq.
>
> Borowitz & Clark, LLP
>
> 100 N. Barranca Avenue, Suite 250
>
> West Covina, CA 91791-1600
>
> (626) 646-2555 Phone
>
> (626) 332-8644 Facsimile
>
> www.blclaw.com
>
>
>
charset="ISO-8859-1"
Re: [cdcbaa] Corp withholdings taxes
You’re correct, it’s not that easy. Half of the Form 941 tax liability for th
The post was migrated from Yahoo.

Corp withholdings taxes

Posted: Thu May 13, 2010 6:31 pm
by Yahoo Bot

Client owns Corp. Corp owes '05 employee withholdings tax which it is
paying. However, my question is with respect to debtors personal
liability in Ch7. In reading 523(a)(1) in conjunction with
507(a)(8)(C), it appears the taxes would be dischargeable if a timely
return was filed and there was no fraud. It can't be that easy. Can
someone enlighten me as to what I am missing here?
Shannon A. Doyle, Esq.
Borowitz & Clark, LLP
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791-1600
(626) 646-2555 Phone
(626) 332-8644 Facsimile
www.blclaw.com

The post was migrated from Yahoo.