What is Trust Fund Penalty?

A Trust Fund in terms of employment tax should not be mistaken with a trust fund in terms of wealth management. This is the payroll tax amount assessed to the officers of the business. Tax resolution can help reduce and or arrange the payment of these taxes.

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.

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Employment Taxes Amid COVID – Part 3

June 8, 2021 - Employment Tax Resolution

Parts 1 and 2 of previous blogs on this topic discussed the deferral of employment tax deposits and payments for the year 2020 and the […]

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Employment Taxes Amid COVID – Part 2

June 1, 2021 - Tax Problem Resolution

Part 1 discussed the deferral of employment tax deposits and payments for the year 2020 (Deferral of employment tax deposits and payments through December 31,

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Business Taxes are Dependent upon Business Structure – Part 3

May 26, 2021 - Tax Problem Resolution

We will discuss the last two of the five business structures recognized by the Internal Revenue Service (IRS) (Business Structures | Internal Revenue Service (irs.gov))

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Business Taxes are Dependent upon Business Structure – Part 2

May 24, 2021 - Tax Problem Resolution

As discussed in an earlier blog, there are five business structures recognized by the Internal Revenue Service (IRS) (Business Structures | Internal Revenue Service (irs.gov)).

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Business Taxes are Dependent upon Business Structure – Part I

May 20, 2021 - Employment Tax Resolution

All businesses must pay taxes. However, not all business taxes are the same for every business. The type, amount and form used in paying taxes

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Tax Lien Discharge Reverts Property Back to You

April 30, 2021 - Tax Problem Resolution

As stated in earlier blogs, the Internal Revenue Service (IRS) has several tools they use to collect back taxes owed: liens, levies, wage garnishments, etc.

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Pay a Portion of What You Owe with a Partial Payment Installment Agreement

April 26, 2021 - Tax Problem Resolution

The Internal Revenue Service (IRS) allows you, the taxpayer, to pay your tax debt in affordable monthly installments in which you determine the amount. These

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