The Trust Fund Recovery Penalty (TFRP) is assessed by the IRS when companies fail to pay the payroll taxes withheld from employee paychecks to the IRS as required.
The Internal Revenue Code allows the IRS to collect unpaid payroll taxes directly from business owners, officers, or employees deemed "responsible persons." This means, if the IRS deems you responsible:
The IRS must prove you had real control over payroll taxes. We dig into the facts: Who signed the checks, who made the decisions, and who actually handled payroll? The answers to these questions will help us build a case to show you were not responsible under the law.
The penalty only applies if the failure to pay was willful. Maybe you were kept in the dark. Maybe you were following orders. We gather evidence to show you did not intentionally fail to pay trust fund taxes.
If you receive a proposed TFRP assessment, time is short. We respond quickly, file formal protests, and present your case to the IRS appeals officer. This is your chance to resolve the issue before it becomes final. We know how to deal with IRS offices and revenue officers, and we do it on your behalf.
If the IRS proves you are responsible, we can still help. We can negotiate an installment agreement, and often times find a way for you to pay less than the full liability.
If we cannot resolve your case in IRS Appeals, we are prepared to proceed to tax court. Our attorneys have represented clients in complex tax litigation, and are always focused on protecting your assets and your future.
Our goal is to defend you against being held personally liable and, when that's not possible, to negotiate a resolution for the underlying business tax issues. We understand the pressure and anxiety these issues create when your personal assets are threatened, and we're here to stand up to the IRS on your behalf. Call (248) 262-3400 to schedule a free case review.
