Are you the owner of a company, or are you responsible for managing the financial aspects of employee tax withholding? Have you needed to delay paying social security and withholding taxes due to other pressing business expenses?
Contact an Ohio Attorney Who Can Help With Trust Fund Recovery Penalties
Call Terri Johnson at 614-476-7666
This type of case involves a penalty that is imposed on business owners who fail to pay the employee's part of the payroll taxes. Often, a business owner attempts to avoid laying off employees and meet the payroll by failing to pay the taxes on the payroll. Unfortunately, though trying to do the best they can to keep their doors open, they have inadvertently done the wrong thing.
When these payroll (also applies to excise taxes) are not paid, the Trust Fund Recovery Penalty (TFRP) may be imposed. The IRS determines the person(s) responsible for collecting, accounting for, and paying over the taxes and may apply the TFRP if they believe the responsible party or parties have acted willfully.
The IRS acts harshly since the trust funds do not belong to the employer, having been withheld from the employee's paycheck. The term 'trust fund' comes from the employer holding the taxes (paid by the employee in the form of withholdings) in trust until they are turned over to the IRS. The TFRP imposes PERSONAL liability for the entire amount of the trust funds that was not paid! Persons that are potentially liable for this penalty include:
• an owner
• 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
• a bookkeeper
• a person authorized to sign checks
• an accountant
• an office manager
• another person with authority and control over funds to direct their disbursement
If You are Contacted by the IRS You Need To Speak With an Experienced Attorney
Contact OH TFRP Lawyer Terri Johnson
If you are contacted for an interview in connection with unpaid payroll or employment taxes, you may be a potential target for imposing this penalty. You will be asked questions designed to find facts that support a finding that you are a 'responsible person' who willfully failed to pay the taxes. There can be more than one responsible person, and the penalty can be collected from any one or more of them that has money or assets to pay the taxes. If the TFRP is assessed against you, it is a penalty and cannot be relieved by bankruptcy. It will remain your debt until it is paid or at least for 10 years.
There are ways to minimize the impact of the TFRP against you personally. With the proper planning, you may be able to avoid the penalty altogether. Call today and find out how I can help you with this serious problem. Call before you make any 'voluntary' payments towards the old payroll taxes (unless you are able to pay them in full immediately). You need to contact me before you participate in an interview over these taxes. If you start the interview, remember that you always have the right to stop the interview and ask to continue after you have retained representation. Contact the Law Office of Terri Len Johnson or call us at 614-476-7666 to find answers on this type of serious tax problem.