Employer BigCo owes $153,000 in tax as shown on its Form 941 for the second quarter of 2X21. BigCo couldn't pay that amount, so BigCo's president, Charlie, waited two full months before filing the return. Later, after the tax went unpaid for quite some time, the IRS asserted the trust fund recovery penalty under IRC Section 6672 in the amount of $115,000 against Charlie. Through its collection tools, the IRS collected $115,000 directly from Charlie exactly 6 months after the return due date and that amount was applied to the Trust Fund portion of the tax that BigCo owed. If BigCo hasn't made any payments toward the liability, how much tax remains for BigCo to pay? Ignore the potential impact of interest.

Answer rating: 100% (QA)

To calculate the remaining tax liability for BigCo after the IRS collected 115000 from Charlie and ... View the full answer