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Article: Trust fund liability.(Commentary)
- Article from:
- Arkansas Business
- Article date:
- July 13, 2009
- Author:
CopyrightCOPYRIGHT 2009 Journal Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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EVEN IN THE BEST TIMES, MANAGING cash flow can be challenging. In a recession, businesses are frequently forced to find creative financing alternatives. Many times the solution is delaying the payment of taxes, specifically trust fund taxes.
Trust fund taxes are among the largest portions of the taxes collected by state and federal governments. Trust fund taxes are taxes paid by, or for, someone else but collected by the business. Typical trust fund taxes are employees' withholding taxes, sales taxes and excise taxes.
Business owners, officers and employees should be aware of the serious repercussions of delaying the payment of trust funds. A short-term ...