Proving You Are Not a "Responsible Person"

The IRS often tries to hold individuals personally liable for trust fund taxes by labeling them as “responsible persons.” This can include owners, officers, directors, or even employees who had check-signing authority. We work to prove that you did not have the power to direct payroll tax payments or financial decisions. By showing you were not responsible, we protect your income, property, and bank accounts from being seized to pay business tax debt.

Demonstrating Lack of Willfulness

To impose a trust fund recovery penalty, the IRS must prove that the failure to pay withheld taxes was willful. We build a defense that shows the opposite. Whether funds were unavailable, creditors were paid first to keep the business running, or other circumstances prevented payment, we present facts to demonstrate lack of willfulness. This defense can reduce or even eliminate your tax liability and prevent the IRS from collecting against your personal assets.

Handling IRS Appeals

If the IRS moves forward with a trust fund recovery penalty, you have the right to challenge it before an IRS appeals officer. This step is critical because it allows you to resolve the issue without going to tax court. We represent you throughout the appeals process, preparing the strongest possible case and negotiating directly on your behalf. Our goal is to achieve a favorable outcome while minimizing the stress and expense of litigation.

Resolving the Underlying Tax Liabilities

Trust fund recovery cases rarely exist in isolation. They often involve unfiled tax returns, unpaid payroll taxes, or prior-year back taxes. We address these underlying tax issues by negotiating installment agreements, offers in compromise, or other resolution methods. By resolving the root problems, we not only protect you from immediate collection actions but also help prevent future IRS enforcement.

Why Ann Arbor Businesses and Employees Trust Ayar Law

We understand how IRS employees operate and how to respond effectively to their demands. Clients choose us because we communicate clearly and a know how to design a defense strategy built around their specific needs. We know how much is at stake, and we work tirelessly to protect your ability to provide for yourself and your family.