TRUST FUND RECOVERY PENALTIES
Trust fund recovery penalties. We often receive calls from business owners who have severe payroll tax debts and they have seen commercials on TV that tout getting a reduction on the amount of tax they owe. Being Tax Resolution Specialists who understand that when it comes to payroll tax debt, the IRS has a much more agressive posture than normal personal income tax debt, we often have to explain that depending upon how severe the debt is, and the circumstances of how the debt came to be, the closure of the business may be an issue. And that closure may not be from the IRS simply closing the doors, but demanding the money in a way that makes the operation of the business going forward impossible. Trust fund recovery penalties.
So what do you do ? FIrst and foremost you don’t send the wrong signal to the IRS Agent who will contact you. Often, business owners who think they know what to do, do exactly that, and they send the wrong signal, and like a knee jerk reaction the IRS goes into collection mode. It’s best to have a well seasoned tax professional who has decades of Tax Resolution Services experience to show in this complicated area of taxation.
Employees who have the ability to write checks paying the payroll taxes of the Corporation, Officers and Shareholdrs can be held Personally Liable for a corporations non-compliance in paying payroll taxes. The IRS will determine who was “willful and responsible” by eventually having a non-assertion interview to determine who is responsible for the tax. THey can then go after the personal assets of those they deem responsible.
We have dealt with numerous business owners over the last 34 years who were caught in the cross hairs of the IRS, and were able to prevent the assesment of the Trust Fund penalty. In many instances, it was what save the business from going under. That is our number one goal in dealing with Business owners with these issues, keeping the business alive and well. We can certainly look at options for reductions in the tax, but job number one is making sure these issues don’t overwhelm the business. We had a client that owed $7,500,000 in payroll tax and paid $0. That’s an extreme case, but it did happen. If we can do that for that client, imagine what we can do for you. Trust fund experts.