Trust Fund Recovery Penalty & IRS Payroll Tax Problems

If your business has failed to pay your payroll taxes, the IRS can hold you liable for the Trust Fund Recovery Penalty. If you have received a proposed assessment of a Trust Fund Penalty from the IRS, you only have 60 days to protest the assessment. Without taking another step, call us right away so we can protect your personal finances and the security of your future financial condition and business ventures.

Free Consultation!
We can’t help until you contact us. Click here to fill out our simple
Tax Resolution form

In a Trust Fund Recovery Penalty assessment, the IRS easily can place your individual assets, wages, and bank accounts in jeopardy. If your company has unpaid payroll taxes and you are the responsible party, contact us immediately before the IRS takes action against you as the responsible party. We repeat our call to action because the consequences for you of not taking action quickly can become catastrophic.

Formerly known as the 100% penalty, the Trust Fund Penalty is assessed to the business or the responsible party for the unpaid Trust Funds. Trust Funds comprise of the money you withhold from your employee’s paychecks, including Social Security, Medicare, FICA and Federal Income Tax. In the case of a corporation, an LLC or a business partnership, the IRS will look to the person responsible for paying the payroll taxes to collect the Trust Fund. And they will go after that individual’s personal finances to ensure that the payroll tax debt is fully recovered.

If you contact us today, there is an excellent chance that we can reduce the Trust Fund Penalty to just the payment of the Trust Fund, removing all interest charges, penalties and the non-trust portion of the unpaid taxes due. Through our experience and expertise, we know how to significantly reduce the amount owed for Back Payroll Taxes. Peter Stephan and the Tax Resolution Institute have successfully negotiated Trust Fund Penalty cases for years, providing solutions for business owners who believed they were trapped in a financial vise with no hope of escape.

Free Consultation!
We can’t help until you contact us. Click here to fill out our simple
Tax Resolution form

In addition, if the IRS has called you in for an interview in relation to Unpaid Payroll Taxes, (called a 4180 interview) the Revenue Officers are trying to determine whether you are the party responsible for the Trust Fund. The last action you ever want to take is to be interviewed by the IRS about a Trust Fund Penalty inquiry without professional and expert representation by your side. Not only do you need to be prepared for such an interview, you need Peter Stephan and the trusted expertise and long-term experience of the Tax Resolution Institute guiding you through this potential minefield. A single misstep can lead to an explosive disaster not only in regards to the future of your business, but in terms of your personal finances as well.

You must remember that the IRS only has three years to assess the Trust Fund Penalty. Since they are so strict and determined when it comes to Unpaid Payroll Taxes, the IRS Revenue Agents prioritize the Trust Fund Recovery Penalty and focus on making swift assessments. If you and your business have unpaid payroll taxes and you are the responsible party, be smart and contact us today.

We now will quote the entire law so you can see for yourself the severity of the statute: “IRC Section 6672(a): Any person required to collect, truthfully account for, and pay over any tax imposed by this title who willfully fails to collect such a tax, or truthfully account for or pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.”

From the perspective of the IRS, willfulness means that the responsible person knew about the unpaid taxes, and used the extra funds to keep the business going by covering costs related to basic operational expenses or other creditors. Additional standards in relation to willfulness include intentional, deliberate, voluntary, reckless disregard, knowing or accidental, free will or choice. If the payroll taxes are unpaid, however, the IRS will not be worrying about grammar or definitions. The IRS Revenue Officers actively will be looking for someone to penalize and that person could very well be you, or any other signatory on the company’s bank account.

Although the IRS examines the business scenario that led up to the payroll taxes not being paid, they honestly focus on finding the party responsible first and foremost. If you were in charge of your company’s payroll or you signed the payroll checks, you almost always are the responsible party in the eyes of the IRS. When it comes to Unpaid Payroll Taxes, the IRS does not waver or bend in their determination to recover the money and penalize the responsible party.

Free Consultation!
We can’t help until you contact us. Click here to fill out our simple
Tax Resolution form

To discover this information about the responsible party, the IRS will look at the Bank Signature Card. If multiple persons are listed on the Bank Signature Card, each individual will be called in for a 4180 interview. It is essential to understand is that the IRS is not trying to cross out possible suspects in order to find a single individual to hold up as the responsible party. In contrast, their goal in 4180 interviews is to uncover as many responsible parties as possible. The more people they have on the hook, the more likely the Trust Fund Recovery penalty will be paid in full. In addition, with more personal finances in the mix, the rate of payment of the Trust Fund Penalty to the IRS will be faster.

If your business has fallen upon hard times in this difficult economy, keeping current with your Payroll Taxes is not a choice, but a necessity. If your Payroll Taxes have not been filed on time or if you have Unpaid Payroll Taxes, your lapse will be discovered by the IRS. If you have received a proposed a Trust Fund Recovery Penalty, you only have 60 days to protest the assessment. Rather than risk your financial future, contact Peter Stephan and the Tax Resolution Institute. With our trusted experience and professional expertise, we can help you find a solution when you confront the business and personal financial crisis of a Trust Fund Penalty assessment and Unpaid Payroll Taxes.

Do Not Hesitate! Contact Us Today! Call 818-704-1443 for immediate assistance.