The Trust Fund Recovery Penalty is a penalty assessed to employers who have failed to forward withheld employee payroll taxes (like income and employment taxes and social security payments).
Business participants considered responsible for payroll tax payments include:
- An officer or an employee of a corporation
- A member or employee of a partnership
- A corporate director or shareholder
- A member of a board of trustees of a nonprofit organization
- Another person with authority and control over funds to direct their disbursement
- Another corporation
If an individual is found by the IRS to be a “responsible person,” they will be assessed the Trust Fund Recovery Penalty. This assessment can result in tax liens, property seizures and garnishments.
If you’ve received notice of a Trust Fund Recovery Penalty, the time to act is now! Call Direct Tax Relief today at (800) 505-4134 for your FREE Tax Resolution Analysis.