IRS Payroll Tax & Trust Fund Recovery Penalty Defense

Payroll tax liabilities pose one of the greatest personal risks for business owners, officers, managers, and even certain employees. Under the Trust Fund Recovery Penalty rules, individuals who are responsible for collecting and paying employment taxes can be held personally liable if those taxes are not remitted to the IRS. The Trust Fund Recovery Penalty is 100% of the unpaid trust fund taxes, plus accruing interest. The IRS aggressively pursues unpaid trust fund taxes, including by imposing the Trust Fund Recovery Penalty on responsible parties. An experienced IRS payroll tax and Trust Fund Recovery Penalty defense attorney can help mitigate or avoid exposure.

Common IRS Trust Fund Penalty Issues

  • Worker classification
  • Corporate vs. personal liability (willfulness & piercing the corporate veil)
  • Responsible person determination
  • IRS collection actions

IRS Payroll Tax & Trust Fund Recovery Penalty Defense Process & Strategy

  • Consider engaging experienced IRS tax penalty defense counsel as soon as possible.
  • Consider Voluntary Disclosure (if eligible)
  • Don’t ignore IRS correspondence, be proactive, meet deadlines or obtain extensions.
  • Carefully evaluate relevant facts and circumstances and develop a penalty defense strategy, including:
    • Evaluating worker classification and trust fund taxes assessed.
    • Evaluating financial and decision-making responsibility and authority within the company.
    • Demonstrating lack of willfulness.
    • Prospective improvements to tax reporting and payment processes.
  • Prepare supporting documentation and respond to IRS requests.
  • Prepare and file a Reasonable Cause / Penalty Abatement Request.
  • Negotiate with the IRS.
  • Prepare for potential protest and Appeals review.

Contact an experienced IRS payroll tax and Trust Fund Recovery Penalty defense attorney

Nick Eusanio

Cincinnati tax lawyer, Columbus tax lawyer, Ohio tax lawyer, Southwest Ohio tax lawyer, Covington tax lawyer, Kentucky tax lawyer, Northern Kentucky tax lawyer, Cincinnati tax attorney, Columbus tax attorney, Ohio tax attorney, Southwest Ohio tax attorney, Covington tax attorney, Kentucky tax attorney, Northern Kentucky tax attorney