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Payroll Tax Issues

What You Should Know If you owe payroll taxes to the IRS, the agency can come after your business assets and your personal assets. A Trust Fund Recovery Penalty (TFRP) is a civil penalty assessed by the IRS against a party, or parties, deemed responsible and willful for not turning over certain employment (payroll) taxes to the government in the form of payroll tax deposits. These taxes are commonly known as trust fund taxes, because employers are required to hold the taxes “in trust” until they are turned over to the IRS. The total unpaid trust fund taxes of a corporation or LLC can be converted to a TFRP against one or more parties (usually the business owners), at which time a business tax liability becomes a personal tax liability of the responsible party. After this occurs, the IRS will begin the collection process against the individual taxpayer.

How We Can Help

If you find your business, or yourself, a subject of a trust fund recovery penalty investigation, it is important to take immediate steps to prevent the TFRP from being assessed against you. Once a TFRP is assessed, the IRS can collect from you, the individual, and often a federal tax lien is filed if you cannot fully pay. We are highly experienced in these types of investigations and will guide you through the necessary steps to prevent the civil penalty from being assessed against you. As experienced tax practitioners, we know how the IRS works and how to protect you and your assets.