Trust Fund Penalty Assessment Interview
What Is A Trust Fund Recovery Penalty 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. If the IRS believes you to be responsible for the trust fund taxes, they will request an interview with you. The purpose of trust fund penalty assessment interview is to figure out if you are responsible for the recorded unpaid taxes or not. The IRS form is called a 4180 because the IRS agent will ask questions from the Form 4180 (Report of Interview With Individual Relative to Trust Fund Recovery Penalty).
What Is The “Trust Fund” In Regards To Form 4180?
A “trust fund” is a type of tax that makes up most of the payroll taxes due to the United States Treasury. Payroll taxes are withheld on behalf of the employee in trust for the US Treasury. Employers are responsible for taking the employees money and sending it to the IRS on behalf of all employees. The amount of money the employee owes to the IRS is what is called “trust fund” taxes.
When the IRS does not receive any money on behalf of the employee from a business, The IRS will then try to collect this trust fund tax by imposing form 4180
How to Avoid the 4180 Interview if Liable?
Examples of Personal Assets
How to Avoid the 4180 Interview if Not Liable?
How Can One Survive A Trust Fund Interview For Back Payroll Taxes?
Some reasons why trust fund is assessed when it should not be:
Being honest and upfront is the fastest way to get this matter resolved. Although you may feel liable it’s best to contact a tax professional to verify and assist you with moving forward. If you believe yourself to be innocent and should not be held accountable, there is help out there for you. We are that help, please contact us for any questions or assistance with your current situation. Check out more of our tax problem resolution services.