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.

Tax Resolution: What are my Options?

In our previous post, Tax Resolution: What is It?, we kicked off our newest mini-series discussing the subject of Tax Resolution. Unfortunately, tax resolution and tax relief are services many Americans require to help them with IRS-related issues. As we discussed in Tax Resolution: What is It?, people can end up owing the IRS money for a variety of reasons, but some of the most common are related to filing improper paperwork, making incorrect payments or making late payments. The bigger issue is that once a problem starts with the IRS, if it’s not taken care of in the proper amount of time, it can grow from a tiny snowball into a massive avalanche of trouble.

That’s why we, the team of tax resolutions specialists at Bullseye Tax Relief, are here to help! In this blog post, we’ll discuss some of the common options you or your business may have when it comes to tackling your tax resolution problems.

But remember, when it comes to the IRS, time is of the essence! So if you have any upcoming deadlines, or received any recent filings of notices from the IRS, give us a call at (844) 582-3323, or send us an email at info@bullseyedebtrelief.com now!

Common Tax Resolution Options

As we mentioned at the end of the last blog post, Tax Resolution: What is It?, there are some options available to individuals and businesses to allow them to relieve their debt to the IRS without causing financial hardship. In this post, we’ll share some of the basics about the most common options, like Offer in Compromise, Currently Non-Collectible, Penalty Abatement, Install Agreements and the Partial Pay Installment Agreement. In our following posts, we’ll discuss each one individually in more detail.

Offer in Compromise:

Offer in Compromise (OIC) allows someone to negotiate their tax debt and potentially settle their debt for less than the original total amount owed. Offer in Compromise was created for people with an overwhelming amount of tax debt that they won’t be able to pay off without experiencing financial hardship. To learn more about Offer in Compromise, visit our Offer in Compromise Page or read our next blog post!

Currently Non-Collectible:

Currently Non-Collectible allows someone to essentially pause the collection activities of the IRS for a period of time. Currently Non-Collectible typically applies if you agree that you owe outstanding funds to the IRS, but your current financial situation makes it impossible to repay those outstanding funds without causing financial hardship. Learn more about Currently Non-Collectible here.

Penalty Abatement:

Penalty Abatement Relief allows someone to potentially waive certain penalties or fees from the IRS. The fees eligible for penalty abatement are typically associated with penalties relating to the failure to file taxes or make payments on time as an individual or failure to deposit certain taxes as a business. Visit our Penalty Abatement Page to learn more.

Installment Agreement:

An Installment Agreement allows someone that isn’t able to re-pay their tax debt in full the opportunity to pay off their debt in monthly payments. There are many different types of IRS installment agreements with different advantages. To learn more, visit our Installment Agreement Page or contact us today

Partial Payment Installment Agreement:

A Partial Payment Installment Agreement allows someone to pay back a portion of their, rather than the full amount, over a period of time specified by the IRS. The Partial Payment Installment Agreement is particularly beneficial because it allows someone to repay less than they originally owed. Learn more on our Partial Payment Installment Agreement Page.

In our next blog post, Tax Resolution Services: Offer in Compromise Requirements, we’ll go into more detail about the requirements to take advantage of the Offer in Compromise tax resolution option. Check back soon!

Tax Resolution Options