Liability for trust fund taxes (the portion of an employee's wages that a
employer withholds from the employee's check) is not dischargeable
regardless of the age of the tax.
If you were an employer, or a "responsible person" for a
corporation or partnership that did not pay withheld funds to the taxing
authority, you may have personal liability for the taxes withheld.
Trust fund taxes or the penalty assessed against a responsible person can be
paid through a Chapter 13 plan.
Distinguish the trust fund portion of the tax from the employer's portion of
various taxes: the employer's portion of employment taxes can be
discharged if it is not a priority
tax or a trust fund tax.
Under the law of some states, sales taxes are also trust fund taxes. In
other states they are excise taxes. Excise taxes become dischargeable with
time; trust fund taxes do not.
