Figuring the Amount of the IRS Trust Fund Recovery Penalty for Unpaid 941 and 944 Payroll Taxes | Calculation of the Civil Penalty 6672 IRS Personal Assessment of the Trust Fund Recovery Penalty
The Social Security (FICA) tax consists of two parts:
1. Old-age, Survivors, and Disability Insurance (Social Security) and 2. Hospital Insurance (Medicare).
The trust fund portion of withholding tax consists of the income tax withheld and the employee portion of FICA.
To figure the amount of the trust fund of any particular period you will need to look at the IRS Forms 941 or 944 (most businesses file quarterly 941 taxes).
1. Go to Line 3, income tax withheld from wages, tips and other compensation. Take 100% of this amount.
2. Next go to Line 5d (to sum of 5a + 5b +5c) and take 1/2 of this amount.
3. Add steps 1 and 2 and there you have it, the total trust fund amount.
If you paid a portion of the tax due it will be a little more difficult to determine how much of those taxes were applied towards the trust fund portion as the IRS will apply a portion towards the non-trust amounts (employer matching portion of FICA).
This taxpayer has a trust fund balance of $14,596.74 (line 3=$7224.62 + 1/2 of line 5d=$7372.12).
1. Old-age, Survivors, and Disability Insurance (Social Security) and 2. Hospital Insurance (Medicare).
The trust fund portion of withholding tax consists of the income tax withheld and the employee portion of FICA.
To figure the amount of the trust fund of any particular period you will need to look at the IRS Forms 941 or 944 (most businesses file quarterly 941 taxes).
1. Go to Line 3, income tax withheld from wages, tips and other compensation. Take 100% of this amount.
2. Next go to Line 5d (to sum of 5a + 5b +5c) and take 1/2 of this amount.
3. Add steps 1 and 2 and there you have it, the total trust fund amount.
If you paid a portion of the tax due it will be a little more difficult to determine how much of those taxes were applied towards the trust fund portion as the IRS will apply a portion towards the non-trust amounts (employer matching portion of FICA).
This taxpayer has a trust fund balance of $14,596.74 (line 3=$7224.62 + 1/2 of line 5d=$7372.12).