Recent IRS guidance stated that individuals who divert trust fund taxes (i.e., payroll taxes withheld from employee paychecks) for personal or business expenses must report the diverted amounts as taxable income in the year the diversion occurs. This applies to any person who misappropriates these funds, not just "responsible officers" liable for the trust fund recovery penalty under §6672 of the Internal Revenue Code. If the individual later repays the diverted funds, they may qualify for a deduction in the repayment year.