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.

What Are Tax Relief Services? - Bullseye Tax Relief

When dealing with a less than ideal tax situation, it may become easy to feel in over your head. Tax relief services make it so that you do not have to deal with your tax problems alone. Tax relief services make it so that you can partner with a skilled tax professional to resolve any tax issues or questions. Although there is a fee associated with tax relief services, you’re likely to find that the benefits outweigh the costs as these services aid you in eliminating tax penalties and interest, getting the IRS to stop sending you notices and reducing your tax debt significantly. Not only can seeking the aid of a tax professional stop your wages from being garnished and your assets from being taken, they help you get every aspect of you and your businesses tax situation in order.

What is the Tax Relief Service Process?

1. Free consultation

Tax relief companies typically offer a free initial consultation which lasts around 30 minutes where a tax professional will ask you questions about your tax and financial situation, what you are seeking the services for and lay out some options for a path to success.

2. Strategy

After the first consultation, a tax professional will have taken a deep dive into your file including your financial and IRS transcripts. Once they have done this, the tax professional will offer you a list of services and IRS programs which they feel best fit your situation and will present the fees associated with the services.

3. Tax Resolution

Once you approve of an option from the list given to you by the tax professional, they will require that you sign over a form 2848, Limited Power of Attorney(POA) so that they can get started on resolving your tax issue and are able to directly deal with the IRS on your behalf. The tax professional handles all of the paperwork and communications with taxing institutions.

4. Settlement

Once the IRS approves the offer your tax professional has presented them with, you begin to pay the IRS. As long as you maintain good compliance in regards to filing and paying your taxes for at least the next 5 years, the IRS will deem you as fully compliant and leave you alone. In addition to resolving your issue, your tax professional will provide you with advice to avoid future tax issues. Once your case is completely settled, your tax professional will withdraw their Power of Attorney from the IRS.

What Types of Tax Resolutions Does a Tax Relief Service Provide?

Your tax professional will typically make sure they’ve looked at all aspects of your situation and give you a list of tax relief programs that would be ideal with your situation, both what the IRS is willing to settle for and what fits within your current budget.

A few examples of programs offered

Next Steps: If you feel that you may need the aid of Tax Relief Services for any reason, whether it be an incorrectly filed return or a threat for asset levying, look no further, We are here to help you find your way out of tax debt and into success. Give us a call today for a free consultation.