Trust Fund Penalty Assessment
What is a Trust Fund Recovery Penalty Assessment?
Who Is A Trust Fund Recovery Penalty Assessed Against?
Will Business Owners Be The Only Ones Getting Assessed?
Can The IRS Impose The Penalty On More Than One Person?
Examples of a responsible person or group of people
If the IRS determines that you are a responsible person, they will provide you with a letter stating that they plan to assess the TFRP (Trust Fund Recovery Penalty) against you. You then have 60 days from the date of the letter to appeal their proposal. The letter will explain the rights you have to appeal. If you do not respond to their letter, they will assess the penalty against you and send a Notice and Demand.
How Can You Avoid The TFRP?
Withholding trust fund taxes from the IRS can lead to heavy fines for any party involved. Not only are you hurting the IRS, you could also be significantly harming your employee by not following through with their tax withholding. If you have any questions or concerns about any TFRP situation feel free to contact us.
See more of our IRS tax resolution services.