IRS Says It's Owed $3M In Security Co. Bankruptcy

Law360, New York (November 16, 2012, 4:27 PM EST) -- The Internal Revenue Service on Thursday told a Maryland bankruptcy judge that bankrupt security contractor TW & Co. Inc. can’t dodge part of its $3 million in employee benefits and tax liabilities because the company has chosen a wind-down over a restructuring and therefore does not need extra funds to continue business operations.

The IRS said federal law allows restructuring companies to avoid paying the government the Medicare and Social Security taxes withheld from employees — so-called non-trust fund taxes — as long as it’s necessary...
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