Employment Tax Issues and Trust Fund Recovery Penalties
Our firm handles trust fund recovery penalty defense. Individuals of an employer who have a fiduciary duty to withhold taxes from an employee’s paycheck to pay the IRS and fail to pay over the taxes to the IRS, can receive a Trust Fund Penalty. This is one of the most severe penalties the IRS can assess against the person responsible for paying the employee’s share of the taxes over to the IRS. Criminal and Civil Penalties can be assessed. The penalty is harsh. The penalty is not to the business, it is to the responsible person in the business. Additionally, the Trust Fund Recovery Penalty stays in the IRS records, even after it has been handled, potentially resulting in a harsher treatment for the employee-taxpayer for unrelated issues. It is a huge black mark on a taxpayer’s account.