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Transparency In Private Collection Of Federal Taxes, T. Keith Fogg
Transparency In Private Collection Of Federal Taxes, T. Keith Fogg
T. Keith Fogg
Most federal taxes are collected from taxpayers by business entities, held in a public trust for the United States, and then paid over to the Internal Revenue Service (the IRS). While the vast majority of business entities pay over the taxes held in trust in a timely and appropriate manner, a sizeable amount, in dollar terms, does not get paid. The amount of unpaid "collected" taxes in 2008 created a $58 billion tax gap item.
Disclosure law governing federal taxes defaults to non-disclosure for most tax returns. This general rule of non-disclosure governs the returns reporting the taxes collected by …
In Whom We Trust, Temple K. Fogg
In Whom We Trust, Temple K. Fogg
T. Keith Fogg
The Internal Revenue Service ("IRS") collects the majority of taxes through business entities that are required to withhold taxes from wages or collect excise taxes at the time of providing services. These business entities hold the taxes they collect in trust for the IRS. The wast majority of business entities pay over the taxes held in trust in a timely and appropriate manner; however, a sizeable amount, in dollar terms, does not get paid. Aside from passing criminal laws at or near the passage of the 1954 code, Congress has done little to create a structure that provides incentives for …
Leaving Money On The Table And Providing An Incentive Not To Pay -- The Story Of A Flawed Collection Device, Temple K. Fogg
Leaving Money On The Table And Providing An Incentive Not To Pay -- The Story Of A Flawed Collection Device, Temple K. Fogg
T. Keith Fogg
As of September 30, 2007, the IRS had $282-billion of unpaid assessments on its books. Of that amount $58-billion, over 20 percent, represents the unpaid payroll taxes due from employers. The majority of payroll taxes due from employers results from income and social security taxes collected by the employer and held in trust for the government. Internal Revenue Code section 6672 ("6672") gives the government the right to pierce the corporate veil to pursue collection of these payroll taxes. Because it creates personal liability, 6672 can serve as a powerful tool in the fight against the growing tax gap.
Unfortunately, …