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Trump threatens to cut funds if ‘communist’ Mamdani wins mayoral election
(www.theguardian.com)
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this post was submitted on 04 Nov 2025
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politics
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How would the individual be protected from the IRS if they are penalized by the IRS for non-payment of taxes. Just because you sent a check to some state entity doesn’t mean those federal taxes have been paid, and that state entity likely wouldn’t have the authority or resources to protect you from the IRS.
It would be kind of like sending your mortgage payment to your lawyer when you have a dispute with your bank. You still owe that money to the bank, and they can take action for non-payment.
Damn, looks like Trump shouldn't have slasher the IRS budget and fired all their auditors.
Some jurisdictions allow escrow payment when in a legal conflict, in which case you actually might be sending money to your lawyer instead
... Probably doesn't apply for US taxes, but it's a thing
Well, kinda. But in this example, you've put the money in escrow, which gives you protection while everything plays out in court
But you as an individual won’t be suing the IRS so escrow makes no sense in this case.
Yes, but you've also separated the money and put it under the care of a third party. And presumably, you'd do this as a matter of state law
When the IRS comes knocking, you can say "sure thing, your money is over there, as according to local laws". The IRS can then sue you, but you followed the law and set the money aside - clearly you weren't attempting to avoid paying
Which realistically means the federal government needs to sue the state, either to overturn the state law or collect all the money