Ezel / IRS Rulings / 201105034

CCA 201105034: Employment tax deposits cannot be designated between trust fund and non-trust fund taxes

Number
201105034
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Mode or Time of Collection
Topics
Procedure, penalties, and administration
Code sections
§ 6302, § 6151
Ruling dated
January 6, 2011
Publicly released
February 4, 2011
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advice addressed whether taxpayers could designate federal tax deposits between trust fund and non-trust fund employment taxes. The advice stated that taxpayers have no such right because required remittances made during the quarter are deposits, not payments. A payment arises only after the IRS makes an assessment for an amount that is due and payable, and reportable employment taxes do not become due and payable until the return's due date. The IRS policy allowing voluntary partial payments to be applied according to taxpayer instructions therefore does not apply to these deposits.

Ruling snapshot

  • Question: Can a taxpayer direct how an employment tax deposit is allocated between trust fund and non-trust fund taxes?
  • Outcome: Advice given.
  • Key authorities: IRC §§ 6151 and 6302.

Full text (IRS public release)

ID: CCA_2011010610332522 Number: 201105034
Release Date: 2/4/2011
Office: --------------
UILC: 6302.00-00, 6151.00-00

From: -----------------------------
Sent: Thursday, January 06, 2011 10:33:27 AM
To: ---------------------
Cc:
Subject: ------------------------------Designation of partial payments of tax deposits

Taxpayers making federal tax deposits to satisfy employment tax withholding requirements have no right to designate between trust fund and non-trust fund taxes. Taxpayers are required by law to make deposits throughout the quarter; however, these remittances are not payments. In order to have a payment, the Service must first make an assessment. The Service cannot make an assessment until an amount is due and payable. Employment taxes required to be reported are not due and payable until the due date of the return. Any remittance made prior to the due date of the return is a deposit and not a payment. The Service's policy to apply a voluntarily tendered partial payment of tax in accordance with a taxpayer's instructions is not applicable to deposits.

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