If the fraud involves payroll taxes collected for submission to the IRS, it is referred to as:
A) Trust liability taxes.
B) Pass through taxes.
C) Withholding entity taxes
D) Trust fund taxes.

Question

Quizplus · Accepted Answer

Payroll taxes collected for submission to the IRS are referred to as trust fund taxes because the employer holds the funds in trust until they are paid to the government. Failure to pay these taxes is considered a serious offense and can lead to severe penalties, including fines and imprisonment.

If the Fraud Involves Payroll Taxes Collected for Submission to the IRS