What is a Trust Fund Recovery Penalty (TRFP)?

A Trust Fund Recovery Penalty can be assessed if the unpaid trust fund taxes cannot be immediately collected from the business. This often happens if the business falls on hard times and taps into that fund for any reason. According International Revenue Code 6672(a) an individual can be held liable for penalty for willful failure to collect, account for, or pay to the IRS the taxes for the business.

Who is Held Responsible for the TRFP?

According to the IRS, the TRFP can be assessed against any person who is: responsible for collecting or paying withheld employment taxes, willfully fails to collect or pay the taxes.

Services - Bullseye Tax Relief

Our Services

Tax Problem

Resolution

Offer In Compromise

Offer in Compromise (OIC) allows you to settle your tax debt for less than the amount you owe. Offer in Compromise was created for those in tax debt that could not pay off their debt in full without experiencing financial hardship in doing so.

Currently Non-Collectible

If you agree that you owe money to the IRS but your financial situation makes it impossible to pay what you owe without causing financial hardship, you may qualify for a Currently Non-Collectible status.

Penalty Abatement

Penalty Abatement relieves you from facing penalties for failing to file tax returns or make payments on time as an individual or failure to deposit certain taxes as a business.

Installment Agreement

If you cannot pay your tax bill in full, there are many different types of installment agreements. All of them have their own benefits. The IRS allows you to break down your debt into monthly installments.

Partial Payment Installment Agreement

The IRS may agree to allow you to pay only a portion of your debt over an allotted amount of time. In this situation, you are paying an amount less than the original tax debt amount.

Federal Tax Lien

A tax lien affects your financial assets, personal property and your real estate property. Tax liens can vary based upon your individual situation.

Tax Lien Discharge

A tax lien discharge removes your tax lien from a specific property. If you request a tax lien discharge and the IRS accepts your request, they will give you a Certificate of Discharge.

Tax Lien Subordination

Tax lien subordination gives a creditor the opportunity to move ahead of the IRS in their claims against a property. Doing so may be necessary for real estate transactions such as a mortgage refinance.

Tax Lien Withdrawal

You may be eligible for a Tax lien withdrawal if you have entered into a direct debit installment agreement or have come to some sort of an agreement regarding your tax debt with the IRS.

Wage Garnishment Release

The IRS can obtain a wage garnishment against your wages and earnings through your employer to satisfy a tax debt. When you obtain a wage garnishment release, the IRS agrees not to take any part of your wages to satisfy your tax obligation.

Bank Levy Release

A bank levy gives the IRS the ability to freeze your bank account and collect whatever money you have in that bank account to pay towards your tax debt.

Innocent Spouse Relief

Innocent Spouse Relief relieves you from paying any penalties, interest or taxes for which your spouse is ultimately responsible for.

Statute Of Limitations

The statute of limitation is the time period established by law for the IRS to assess, review and resolve any tax related issue. Once the time period passes, the IRS forfeits any claim. How can the statute of limitations impact your tax debt situation?

Collection Appeal

A Collection Appeal allows the taxpayer to challenge the IRS’s actions for the collection of past taxes, including the placement of liens on the taxpayer’s properties.

Administrative Appeal

An administrative appeal allows you a second chance to reverse or stop an IRS’s decision or action that is unfair or incorrect. This may lead to a more favorable outcome for your tax situation.

Employment Tax

Employers are expected to pay federal and state taxes for and on behalf of their employees. This are referred to as “payroll taxes”. When these taxes are not paid, there are severe penalties and interest due in addition to the original amount owed.

Trust Fund Penalty

The term “Trust Fund” has a different meaning when applied to employment tax rather than to wealth management. This is the payroll tax amount assessed to the officers of the business.

Trust Fund Penalty Assessment

Trust Fund Recovery Penalty is implemented by the IRS to encourage business owners to pay their employment taxes. An employer experiencing hard times may be tempted to utilize these funds for other expenses. This action has dire consequences.

Trust Fund Penalty Assessment Interview

A Trust Fund Recovery Penalty Interview and investigation permits the IRS (Internal Revenue Service) to collect unpaid taxes from businesses and assets of the individuals involved in the finances of the business.

Current Due Process

A Collection Due Process hearing could be your last chance to resolve whatever tax controversy you have with the IRS.

Tax

Prepation

Individual Income Tax

Individuals earning income in the United States pay a percentage of their earnings to the Internal Revenue Service (IRS) in the form of individual income taxes.

Business Income Tax

Every business except partnerships must file an annual income tax return, whether they are a small business, sole proprietor or large corporation.

Business Payroll Tax

All employers must report and deposit employment taxes to the Internal Revenue Service (IRS) throughout the year.

Contact us as soon as you can

Our consultation is FREE. The sooner you contact us, the sooner we can get to work for you.