Tax Resolution Services
For businesses owners who might owe a civil penalty for unpaid payroll taxes, DTR can help find a resolution so your business can thrive again.
The Trust Fund Recovery Penalty (TFRP) is a penalty assessed to business owners and business associates who have withheld and not submitted employee payroll taxes, such as federal income tax, social security tax and medicare tax. If a business owner or associate is found by the IRS to be a “responsible person,” a TFRP will be assessed and issued tax liens, property seizures and garnishments. Individuals have 60 days from the date of the TFRP to appeal or pay. However, the appeal process can be quite lengthy. But by working with DTR, you can begin your resolution process and get back to doing what you do best – running your business.
With DTR’s Help
Personal penalty assessments for failure to pay payroll tax
Option to appeal assessment
If you owe tax debt, an Offer In Compromise can help you settle it for less. DTR has the expert negotiation skills needed to get your tax debt reduced as much as legally allowed.
If you’re a business owner who fails to file or pay payroll taxes, Direct Tax Relief will negotiate with the IRS to reach a resolution and protect your business from shutting down.
Direct Tax Relief negotiates with the IRS to have these difficult penalties removed from your account, getting you out of debt and back to freedom, based on reasonable cause.
Working with you from the first step of tax debt resolution, Direct Tax Relief has tax accountants to prepare your unfiled tax returns, whether it's an individual return or complex corporation returns.
At Direct Tax Relief, we'll negotiate with the IRS to create an easy, affordable payment plan that gets you in compliance, and works with what you can afford, preventing future IRS wage and bank garnishments.
If your individual or business tax returns are being audited, Direct Tax Relief’s tax experts can take over your audit proceedings to ensure you get the resolution you deserve.
When your taxes remain unpaid and a bank levy is issued, Direct Tax Relief can help you find a resolution so you can avoid frozen bank accounts and money seizure and, in some cases, have current bank levies released.
When your wages, commissions, and Social Security income are being garnished because of unpaid taxes, DTR will negotiate with the IRS to put a stop to it.
If you’re a retail store, contractor, or provide in-home services, you could face state tax issues. But the experts at Direct Tax Relief have expert guidance and solutions to get you on the road to tax debt freedom. We can also help with state income, payroll and sales tax issues.
In certain situations, Direct Tax Relief may be able to have your federal tax lien released, once we complete resolution of your case.
For married couples, filing your taxes jointly can provide many benefits–but it can create problems. If you have tax liabilities, interest, and penalties as a result of filing jointly, DTR professionals can get you on the road to being tax debt free.
If you are looking to refinance your house but have a federal tax lien, the tax professionals at Direct Tax Relief will pursue all avenues to find a solution through a lien subordination.
The Trust Fund Recovery Penalty (TFRP) is a penalty the IRS may assess against individuals responsible for unpaid payroll taxes. It applies to the portion of payroll taxes that were withheld from employees but not paid to the government. This usually includes withheld income taxes and the employee share of Social Security and Medicare taxes. The IRS may hold certain responsible individuals personally liable for these amounts.
The IRS may assess the Trust Fund Recovery Penalty against individuals who had authority over payroll tax decisions within a business. This may include owners, officers, managers, or anyone responsible for collecting or paying payroll taxes. The IRS reviews factors such as decision-making authority and control over financial accounts. Responsibility is determined based on the individual’s role in the business.
The IRS conducts an investigation to determine who was responsible for the unpaid payroll taxes. This often involves reviewing financial records, bank signature authority, and the individual’s role in company decisions. The IRS may also conduct interviews to determine who had control over payroll tax payments. The outcome of this review determines whether the penalty will be assessed.
The Trust Fund Recovery Penalty generally includes the payroll taxes withheld from employees’ wages. This includes federal income tax withholding and the employee portion of Social Security and Medicare taxes. These funds are considered “trust fund” taxes because employers are required to hold them in trust for the government. Failure to remit these funds can trigger the penalty.
Yes, individuals have the right to challenge the assessment of the penalty. This may involve disputing whether they were actually responsible for the unpaid payroll taxes or whether the failure to pay was willful. Evidence and documentation can be used to support the defense. Each case depends on the facts surrounding the business operations and payroll responsibilities.
In the context of the Trust Fund Recovery Penalty, willful generally means the individual knew the payroll taxes were due but failed to ensure they were paid. This can include situations where funds were used for other business expenses instead of paying payroll taxes. The IRS evaluates whether the responsible person intentionally disregarded the obligation. Determining willfulness is a key factor in assessing the penalty.
Yes, the IRS may assess the Trust Fund Recovery Penalty against more than one individual. If several people had authority over payroll tax decisions, each of them may be considered responsible. The IRS can pursue collection from any or all responsible individuals. Responsibility is not limited to a single person within the business.
Yes, once the Trust Fund Recovery Penalty is assessed, the IRS may pursue collection from personal assets. This may include bank accounts, wages, or other property owned by the responsible individual. The penalty effectively transfers the payroll tax liability from the business to the individual. This is why these cases can have serious financial consequences.
The IRS generally has a limited period of time to assess the Trust Fund Recovery Penalty after the payroll tax liability arises. During this time, the IRS investigates the business and determines who may be responsible. The timeline can vary depending on the circumstances and the stage of the investigation. Responding promptly during the investigation can be important.
If you receive notice regarding a Trust Fund Recovery Penalty investigation or assessment, it is important to review the situation carefully. These cases often involve detailed financial records and questions about responsibility within the business. Responding properly to IRS requests and providing accurate documentation can be critical. Taking action early may help protect your rights during the process.
