Trust Fund Recovery Penalties
A Trust Fund Recovery Penalty is a serious penalty that affects both individuals and businesses. The IRS may propose to press the Trust Fund Recovery Penalty against the owners, officers, directors, shareholders or other persons of a corporation that has failed to pay taxes, expanding its collection potential to the people that run the business. The Trust Fund Recovery Penalty amount is equal to the trust fund portion of the corporate liability. Unfortunately, the corporation cannot offer any protection to them.
To determine whether to the Trust Fund Recovery Penalty against an individual, the IRS looks at factors such as:
- Signing authority
- Position held within the company
- Percentage of ownership,
- Control over decision-making
- Authority over signature of the tax returns
- Authority over human resources (hiring/firing decisions)
To avoid the personal assessment you should ensure that the appropriate federal tax deposits are made on time and in full.
If the federal tax deposits have been missed and the corporation cannot afford to pay the balance in full, contact the Law Office of Anthony N. Verni today. We will work with you, study your case, and find the right solution for you.
We can help you
The Law Office of Anthony N. Verni can represent you if are facing a Trust Fund Recovery Penalty. Our focus is on working with you to either eliminate or substantially reduce the Penalty. Depending upon your financial circumstances, we will find the best solution to resolving your TFRP issue.We have over 20 years of experience and a high success rate. The longer you wait, the more complicated your situation may become. Contact us.