Trust fund recovery penalties are a major focus for the IRS. When a business owner is experiencing cash flow issues, they may choose to dip into their payroll tax withholdings in order to satisfy creditors that form a more immediate threat to their business operations. Unfortunately, sometimes those payroll taxes are not properly remitted, leading to a trust fund recovery penalty (TFRP) being imposed directly on the individual.
The “trust fund” part of the name can be a bit misleading, but the general idea is that the individual who received the penalty was holding those payroll taxes “in trust” for the IRS, who then seeks to be made whole on what they are owed.
However, as you might have discovered, the IRS casts an extremely wide net when trying to pin taxpayers with the tax obligations that the actual responsible parties have. As a result, the IRS’ broad approach can lead to non-responsible and/or non- willful innocent parties being hit with a trust fund recovery penalty.
You should know your rights and obligations, and never acquiesce to paying taxes you legally do not owe. If you feel that you have been assessed a trust fund recovery penalty unfairly, the trust fund tax lawyers at Abajian Law are ready to assertively advocate on your behalf.
Vic Abajian is an extremely experienced former IRS lawyer who now fights for the rights of taxpayers, including those facing a TFRP. Having a trust fund penalty attorney in your corner can mean the difference between financial freedom and being saddled with a massive tax penalty that you did not rightfully owe.
Even if you are a responsible person who should have paid employment taxes to the IRS, Abajian Law can help stop collection actions and get the business on an installment agreement. We can stop the IRS from filing liens against a responsible person and the owner or owners of a business, if the business is on an installment agreement to pay the back taxes.
If you are involved in a trust fund recovery penalty situation, you can always contact the attorneys at Abajian Law for a free consultation that is always discreet and comes with no obligation. Contact us with your TFRP problem today at 818.396.5059 and get started on the path to peace of mind.
Professional Tax Representative
October 4, 2022