[jekylisland]

David-

Yes, I agree with you, and thank you for the correction. In my case specifically the only witholdings the juristic person experiences are Social Security tax and Medicare, and those account for the "portion" in my case.

I suppose we could look at witholdings as prepaid interest in anticipation of a taxable event, that being redemption of FRN's rather than USN's.

I haven't figured out how to get the employer's share of the Social Security tax back. If it is prepaid interest for the privilege of discharging employee obligations with FRN's, I should be able to. If it is prepaid interest for the privilege of employing the trust, I probably can't.