Diverting Employment Taxes Creates Taxable Income

In program manager technical assistance, the IRS said that diverting employment taxes for whatever reason—to pay personal expenses or business expenses—results in taxable income. If the individual who diverts the portion of employment taxes that are trust fund taxes (income taxes and FICA withheld from employees) is a responsible individual, the individual will also be liable for the trust fund recovery penalty. #IdeaoftheDay