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.

irs tax return Archives - Bullseye Tax Relief

May 24 2021

Business Taxes are Dependent upon Business Structure – Part 2

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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May 19 2021

An Administrative Appeal Allows for a Second Chance

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As stated in earlier blogs, the Internal Revenue Service (IRS) is not perfect. They can, and do, make mistakes. They can miscalculate tax amounts owed

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May 17 2021

Challenging an IRS Collection Action

Tax Problem Resolution / 4180 interview, business tax help, Collection Appeal, federal tax lien, irs tax return, offer in compromise, tax preparation, tax resolution

Is the Internal Revenue Service (IRS) always correct when assessing taxpayers’ tax returns? Of course not. Since IRS agents are human, they can make incorrect

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May 10 2021

Free Your Bank Account with a Bank Levy Release

Tax Problem Resolution / bank levy, bank levy release, irs tax return, online tax filing, payroll tax resolution, tax calculator, tax preparation

As stated in earlier blogs, the Internal Revenue Service (IRS) has several different tools for collecting a tax debt. Another tool is the Bank Levy.

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May 3 2021

A Tax Lien Withdrawal Releases Your Property

Tax Problem Resolution / federal tax lien, federal tax return, irs tax return, payroll tax resolution, tax lien discharge, Tax Lien Subordination, Tax Lien Withdrawal

There is one more method of negating a tax lien against a property. A Tax Lien Withdrawal removes the Public Notice of Federal Tax Lien

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Apr 30 2021

Tax Lien Discharge Reverts Property Back to You

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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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Apr 27 2021

Federal Tax Liens Ensure Collection of Tax Debt

Tax Problem Resolution / federal tax lien, federal tax return, irs tax return, payroll tax resolution, tax lien on my business

So, you owe the Internal Revenue Service (IRS) money for taxes. You do not have the money so you decide not to pay any amount

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Apr 26 2021

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

Tax Problem Resolution / help with payroll tax, irs tax return, online tax, payroll tax resolution, tax filing

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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Apr 21 2021

How Installment Agreements Can Help

Tax Problem Resolution / help with payroll tax, IRS Guaranteed Installment Agreement, IRS Streamlined Installment Agreement, irs tax return, payroll tax resolution, tax filing, tax preparation, tfrp penalty

Even the best of intentions does not always materialize. You completed and filed your federal income tax return, but suddenly you realize that you do

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Apr 19 2021

Penalty Abatement Relief

Tax Problem Resolution / 4180 interview, irs tax return, online tax, payroll tax resolution, Penalty Abatement Relief, tax return calculator, Trust Fund Recovery Penalty Abatement

Sometimes life just gets the best of you. Your taxes are withheld from every paycheck, but you do not file your tax returns. Sometimes you

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Apr 17 2021

What is Currently Non-Collectable?

Tax Problem Resolution / 4180 interview, irs tax return, payroll tax, tax calculator, trust fund recovery penalty

As stated in previous blogs, there are several tax resolutions options available to taxpayers that are unable to pay an outstanding tax debt. Besides an

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