FYI

[kcjenkins]

FYI. From PPC update.

*Employment Taxes優esignation of Deposits: *The IRS noted in informal advice

that taxpayers making federal tax deposits to satisfy employment tax

withholding requirements have no right to designate between trust fund and

non-trust fund taxes. The IRS's policy to apply voluntarily tendered

remittances of tax in accordance with a taxpayer's instructions applies to

tax *payments *, not tax *deposits *. To have a payment, the IRS must assess

the tax. An assessment cannot be made until an amount is due and payable,

and employment taxes are not due and payable until the due date of the

return. Any remittance before the due date of the return is a *deposit *and

not a payment. CCA 201105034 .

[TAXMAN]

I noticed on the EFTS deposit it wanted a break down of the deposit. At the time I make the deposit I do not correctly know these number. Do I have to do this and when I file the 941 what happens if I have a wrong amount applied to lets say FWH. Does this create a problem? Just asking. Thanks

[GLJEANNE]

I noticed on the EFTS deposit it wanted a break down of the deposit. At the time I make the deposit I do not correctly know these number. Do I have to do this and when I file the 941 what happens if I have a wrong amount applied to lets say FWH. Does this create a problem? Just asking. Thanks

It doesn't matter - you can just leave the breakdown screen blank. Not sure what they use it for - I've always assumed forecasting. But I do way to many deposits to waste time with anything that isn't required!

[JohnH]

This is interesting. Tell me if I'm misreading it. If a company is in trouble and can't pay all its payroll taxes, then the prudent thing to do might be to forego paying the payroll tax deposits. Then when the 941 is due, file it by mail along with a check and do the proper designation for trust fund taxes. This would be the only way the responsible party could guard against a trust fund penalty.

[grandmabee]

I don't follow what you are saying. if they don't pay payroll deposit until filed with 941 how does that stop penalty

[kcjenkins]

It does not stop the penalty. But if you have the option to direct which items you are paying, you can pay the ones that lead to personal liability first, so that you minimize the penalties. Whereas, the IRS will otherwise apply the payment first to the ones that you are NOT personally liable for.