If Payroll Taxes Are Embezzled, Who Does the IRS Hold

question 42

Multiple Choice

If payroll taxes are embezzled, who does the IRS hold responsible?

• A) The fraudster.
• B) The owners and officers of the company.
• C) The employees whose taxes were not paid.
• D) .The lost funds are forgiven by the IRS.

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Definitions:

Face Amount

The nominal value of a security stated by the issuer, for example, the value printed on the face of a bond.

Interest Rate

The percentage of a loan charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage rate.

Note Issuance

The process of creating and distributing a promissory note, which is a financial instrument indicating a promise to pay.

Interest Expense

The financial burden on an entity for using loans or credit over a certain period.