Responsible and Willful Person. If you own or operate a business and you are an officer, director, an employee with power to control financial decisions, or a signatory on the checking accounts and you willfully assist in the non-reporting or non-payment of "trust fund" taxes withheld from your employee's paychecks you may be deemed to be a responsible and willful person. Such a determination, by the IRS, may trigger the 100% Trust Fund Recovery Penalty [TFRP] commonly also referred to as the civil penalty.
Act Immediately and Before You Incur Personal Responsibility. The IRS may call or summons you, to their office, for an interview to determine whether you are a responsible and willful person and therefore liable for a personal assessment, and resulting federal tax lien against your personal real estate or other property. To view the type of questions and the IRS process for holding you personally responsible for the payment of company 941 taxes, Click 941. To lessen both the amount of tax that may be imposed on you and to also document what has occurred so that you may not even be personally assessed for the 100% Trust Tax Recovery Penalty, there are certain steps that you should take the moment that you determine that there are any unpaid or unreported 941 taxes. Contact Us Immediately. We have a long track record of assisting taxpayers to legally avoid the personal assessment of the 100% trust tax recovery penalty. Here is what some of the business owners have to say about how we helped them save their companies.
We can actually avoid the time and embarrassment of your having to go to an IRS field office to complete the 4180 form. For more information concerning your rights, Contact Us Now What You Don't Know Can Hurt You. The Internal Revenue Service cautions employers to collect and pay trust fund taxes as required by law. "Trust Fund" taxes are monies actually withheld for income, social security and Medicare taxes. These monies are withheld from the salary payments of employees and are required to be paid over to the IRS by employers. Most employers must withhold, deposit, report, and pay employment taxes on wages paid to their employees and as an employer you must file Form 941. In addition, an employer may be required to make timely Federal Tax Deposits of the employment taxes. You May Be Held Personally Liable for the Trust Tax Payments. When an employer does not pay the trust fund taxes, and actions by IRS to collect these taxes are not successful, the responsible officers may be held personally liable for these taxes through the Trust Fund Recovery Penalty. The IRS uses the TFRP to facilitate collection of the trust fund portion of taxes by holding your personally liable for the business trust fund tax obligation. They may then put a federal tax lien also on your home. Section 6672(a) of the Code allows the Internal Revenue Service to reach the personal assets of responsible persons who do not withhold and pay to the government amounts required to be withheld. The TFRP applies if income, social security and Medicare taxes that must be withheld are not paid by the person or persons responsible for the collection of trust fund taxes. The TFRP is a civil penalty assessed against a responsible person for failure to collect and pay over to the Government, withheld and collected taxes. The amount of the penalty is equal to the unpaid balance of the trust fund tax. We have trained professionals who review both what has happened and your important and essential documents to determine whether you had the knowledge required, when the trust taxes were not paid to the IRS, such that you may be held personally liable for the payment of the Trust Fund Recover Penalty as a responsible and willful officer of the corporation. The Best Advice. Don't go to any Trust Fund Recovery Penalty meeting with any IRS Revenue Officer until you have consulted with a tax specialist. Contact Us Now Don't sign any form Form 4180 Click 4180 report without consulting with a tax specialist. 940 FUTA Tax. Although IRS Revenue Officers will tell you otherwise and they may even personally assess you at times for the 940 FUTA tax, you cannot be held personally liable for the non-payment of corporation or LLC 940 FUTA taxes. For more information, Contact Us Now Proactive Advice . The Trust Fund Recovery Penalty can be avoided by making sure that all employment taxes are collected, accounted for, and paid to the IRS when required. Make all required 941 tax deposits and payments on time. You may only be legally assessed for the Internal Revenue Service Code Section 6672 Trust Tax Recovery Penalty when you are determined to have been both a responsible and a willful person. We have a team of skilled tax specialists dedicated to working with you to obtain the best possible result for the factual circumstances you disclose to us. To learn more, Contact Us Now Tax Resolution Center
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