Delinquent Form 940 payment

[Joe Btfsplk]

A client faxed me a bill he got from the IRS for a Form 940EZ for 1997 It was a company for which someone else did the return and I have no idea what happened.

The client asked if the statute of limitations could have run. In my opinion I don't think so. Does anyone think otherwise?

I told him that it is possible that the return was filed and the tax paid but it was credited to some incorrect account--but I doubt it. I suspect the IRS has mailed several prior payment requests and someone in the office mislaid them or sent them to someone other than the client who often does not visit the office for months at a time.

[Unregistered]

was the bill to the company or your client?

Is it a trust fund recovery penalty that has been attached to his personal account? If so, the statute is 10 years from the date of the assessment. If it's against the company I don't think there is a statute for FUTA.

JoshInNC

[New York Enrolled Agent]

[QUOTE=Unregistered]Is it a trust fund recovery penalty that has been attached to his personal account?

There can be no trust fund penalty for FUTA tax. Congress restricted the provisions of §6672 to trust fund taxes as defined in §7501. FUTA taxes are not included.

The general rule - If the taxpayer never filed a return, then the tax can be assessed at any time. If the return was filed & the tax was assessed but not paid, then the 10 year statute for collection starts running from the day of assessment.

[JoshinNC]

Thank NYEA,

and welcome to the board.