BulldogTom Posted March 24, 2019 Report Share Posted March 24, 2019 My client has a large balance due on both Income Taxes and 941 Employment taxes. He has a large overpayment on his 1040 this year. I realize the IRS is not going to refund to him. Is it possible to direct the refund to the employment taxes? If so, how would you do so? I don't think it is possible as the tax return TIN is not the same as the 941 EIN, but I am open to suggestions? Thanks. Tom Modesto, CA Quote Link to comment Share on other sites More sharing options...
rscpa Posted March 24, 2019 Report Share Posted March 24, 2019 I don't think there is anything you can do. If business return, they will apply to back business taxes and then to employment taxes. If 1040 overpayment, they will apply to back 1040 taxes and then to trust fund penalties... 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 24, 2019 Report Share Posted March 24, 2019 I would paper file this return with a signed attached statement requesting that the refund be applied to the Trust Fund Taxes. It might work, you have nothing to lose. 2 Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 25, 2019 Report Share Posted March 25, 2019 Most likely the client will get the refund requested since the numbers are not the same. You don't have a choice but to pay the older taxes before the new ones. Blame it on the statue of limitations. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 26, 2019 Report Share Posted March 26, 2019 On 3/24/2019 at 6:22 PM, BulldogTom said: My client has a large balance due on both Income Taxes and 941 Employment taxes. He has a large overpayment on his 1040 this year. I realize the IRS is not going to refund to him. Is it possible to direct the refund to the employment taxes? If so, how would you do so? I don't think it is possible as the tax return TIN is not the same as the 941 EIN, but I am open to suggestions? Thanks. Tom Modesto, CA Here is the (safe link) to the IRS IRM https://www.irs.gov/irm/part21/irm_21-004-006r covering refund offsets that includes the ordering rules and some snips below from that IRM that may help. The individual's personal tax debt would be satisfied first, and then any taxes that are under the business master file. As an officer of the business and person signing the 941s, he would be responsible for the debt, but I, too, think you are out of luck with this. The IRM on this is quite extensive, and I know that you don't like links, so if you want to find this for yourself you can search for "tax refund offset IRM" and it was the first item that came up for me and has the "irs.gov" address. Anyway, here are the snips: Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 26, 2019 Author Report Share Posted March 26, 2019 Thank you Judy. Tom Modesto, CA Quote Link to comment Share on other sites More sharing options...
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