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Trust Fund Taxes

Trust fund taxes are those taxes that are either withheld on behalf of a business' employees or are collected on behalf of the consumer. These type of taxes include the following:

Kentucky Income Withholding Tax
Kentucky Sales and Use Tax
Gasoline Tax
Special Fuels Tax

Taxpayers that collect one or more of the referenced trust fund taxes have accepted the responsibility of submitting these monies to the Commonwealth of Kentucky. The Department of Revenue makes a distinction between taxpayers that show sincere effort to meet their tax obligations and taxpayers that show little or no evidence of cooperation. The distinction is made for the following reasons:

  • The taxpayer that uses trust fund monies as operating capital gains an unfair competitive advantage over other businesses who are in compliance. 

  • The taxpayer has been directed to comply and yet continues to divert trust fund monies. 

  • The amount owed can increase dramatically if the taxpayer ignores filing requirements, thus making it increasingly difficult to recover from the tax debt.

Inquire about Trust Fund Taxes

 

Last Updated 1/14/2005
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