Trust Fund Recovery Penalty Actions Emphasized

In no uncertain terms, the IRS has been told to increase Trust Fund Recovery Penalty actions against business owners. A new report from the Treasury Inspector General for Tax Administration found that the IRS’s penalty actions against employers who fail to remit payroll taxes are neither timely nor adequate. The IRS has been lax when it comes to assessing the Trust Fund Recovery Penalty. The Tax Resolution Institute believes that this audit was the first step in an unleashing of IRS Revenue Officers against business owners across the country.

Enforcement of the Trust Fund Recovery Penalty

trust fund recovery penalty

Trust Fund Recovery Penalty Actions

The Trust Fund Recovery Penalty is called the 100% penalty for a reason; it is the one of the stiffest and most extreme financial penalties available to the United States government outside of the court judgment in the legal system.  The report clearly stated that businesses that do not pay their taxes have an unfair advantage over businesses that do pay their payroll taxes in full and on time. As a result, the Treasury Inspector General for Tax Administration has given a mandate for the IRS to go after business owners with a renewed determination and focus.

In 99 of the 265 cases it reviewed in a statistically valid sample of cases, it was found that the IRS Trust Fund Recovery Penalty actions were inadequate and far from timely. Since the government’s interest is not protected if such tax assessments are overlooked, the Treasury Inspector General wants to ensure that the IRS makes the enforcement of the Trust Fund Recovery Penalty a top priority.

If You Own A Business, Pay Attention

If you own a business and you are behind in your trust fund deposits or you have been taking liberties with the IRS tax deposits of your employees, the time to pay attention and wake up is now. If you do not want your doors to be forever closed and your windows shuttered, if you want to guarantee the future viability of your company, please call the Tax Resolution Institute for help today. Since significant untimeliness still exists when it comes to IRS enforcement policies, the report by the Treasury Inspector General for Tax Administration has lit a fire, and you are liable to get burned.

The Treasury Inspector General for Tax Administration recommended that the IRS emphasize to group managers their responsibilities to monitor Trust Fund Recovery Penalty cases and ensure that IRS Revenue Officers take timely Trust Fund Recovery Penalty actions. In other words, the report has put IRS Revenue Officers in the crosshairs, and the Tax Resolution Institute can guarantee that they will respond with alacrity and severity. If you believe that your company could be subject to the Trust Fund Recovery Penalty, please contact the Tax Resolution Institute for help. Put everything else aside and protect your future by calling 818-704-1443 for a free consultation today.