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Payment of 4975 Taxes


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Guest curious jorge
Posted

Assume IRS has imposed excise tax on fiduciary of plan for prohibited transaction. Can plan sponsor that is exempt org. pay taxes to IRS on behalf of the fiduciary?

Posted

The IRS doesnt care who writes the check as long as it doesn't bounce but the exempt orgs bylaws or state law may prevent such a payment. There is a tax issue of whether the payment is income to the fid.

mjb

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