What is Trust Fund Penalty?

A Trust Fund in terms of employment tax should not be mistaken with a trust fund in terms of wealth management. This is the payroll tax amount assessed to the officers of the business. Tax resolution can help reduce and or arrange the payment of these taxes.

What is a Trust Fund Recovery Penalty (TRFP)?

A Trust Fund Recovery Penalty can be assessed if the unpaid trust fund taxes cannot be immediately collected from the business. This often happens if the business falls on hard times and taps into that fund for any reason. According International Revenue Code 6672(a) an individual can be held liable for penalty for willful failure to collect, account for, or pay to the IRS the taxes for the business.

Who is Held Responsible for the TRFP?

According to the IRS, the TRFP can be assessed against any person who is: responsible for collecting or paying withheld employment taxes, willfully fails to collect or pay the taxes.

business tax help Archives - Bullseye Tax Relief

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Employment Taxes Amid COVID – Part 3

June 8, 2021 - Employment Tax Resolution

Parts 1 and 2 of previous blogs on this topic discussed the deferral of employment tax deposits and payments for the year 2020 and the […]

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Employment Taxes Amid COVID – Part 2

June 1, 2021 - Tax Problem Resolution

Part 1 discussed the deferral of employment tax deposits and payments for the year 2020 (Deferral of employment tax deposits and payments through December 31,

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Employment Taxes Amid COVID – Part 1

May 29, 2021 - Tax Problem Resolution

It is not necessary to say that this past year has been a particularly trying one. COVID has upended the entire world, especially the business

Employment Taxes Amid COVID – Part 1 Read Article

Business Taxes are Dependent upon Business Structure – Part 3

May 26, 2021 - Tax Problem Resolution

We will discuss the last two of the five business structures recognized by the Internal Revenue Service (IRS) (Business Structures | Internal Revenue Service (irs.gov))

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Challenging an IRS Collection Action

May 17, 2021 - Tax Problem Resolution

Is the Internal Revenue Service (IRS) always correct when assessing taxpayers’ tax returns? Of course not. Since IRS agents are human, they can make incorrect

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What is Innocent Spouse Relief?

May 12, 2021 - Tax Problem Resolution

Sometimes an individual underreports his or her income to the Internal Revenue Service (IRS). Whenever the IRS discovers that this has occurred, it will investigate

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