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Trust Fund Recovery Penalties (TFRP)

Personal Liability For a Business Entity’s Unpaid Employment Taxes:  What All Business Owners Need to Know

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Shareholders, Officers, and certain employees can be held personally liable for a corporation’s failure to pay certain payroll taxes (the same can be true with persons involved with an L.L.C. or other type of business entity).  Internal Revenue Code Section 6672 authorizes the IRS to assess personal liability against individuals who were “willful and responsible” for a business entity’s trust taxes that were “evaded, or not collected, or not accounted for and paid over.”  This means that you, or anyone within your business, that the IRS determines to be willful and responsible for the corporation’s (or other entity’s) failure to pay certain taxes could be held personally liable.

Once the IRS has made a personal Trust Fund Recovery Penalty assessment against an individual, the IRS may begin to collect from that individual in addition to its collection efforts aimed at the underlying business entity.  Thus, your individual assets, wages, and bank accounts are put into jeopardy.

At Fortress, we understand how important it is to protect your individual assets, wages, and bank accounts.  Without them, it can be difficult, if not impossible, to provide the basics for yourself and your family.  Therefore, we take Trust Fund Recovery Penalties very seriously.

The best way to resolve a Trust Fund Recovery Penalty is to avoid having it assessed in the first place.  If a tax problem is caught early enough, we can oftentimes negotiate an agreement with the IRS whereby your business resolves its own liability.  However, the longer your tax problem goes unresolved, the greater the chances that the IRS will look to you and whoever else they determine to be responsible for your company’s failure to pay taxes.

In the event that you have already been personally assessed or it is too late to prevent a personal assessment, immediate action is necessary.  We are oftentimes able to convince the IRS not to touch your personal assets, wages, and bank accounts as long as an acceptable agreement on behalf of your company is negotiated quickly.

George T
George T
Bend, OR
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"I didn’t have tax representation, and the IRS froze all of my business bank accounts while I was out of town dealing with a death in my family. I brought in Fortress, and they quickly got my funds released, thereby saving me from a disaster. Their kind and caring staff never made promises they couldn’t keep, and they successfully resolved my tax issues."

If the IRS has already assessed you personally and has begun taking enforcement against your personal assets, wages, and/or bank accounts, you are probably well aware of the serious trouble that you have found.  If you have reached this stage, we can intervene immediately and work towards the reversal of any current enforcement actions.  Assuming that you do not wish to use personal income and assets for the purpose of satisfying the unpaid trust taxes, we can promptly begin negotiations toward an agreement whereby the associated business entity resolves the liability on its own with favorable terms.

Before your situation relative to the Trust Fund Recovery Penalty worsens, we strongly recommend that you CALL US TODAY FOR A FREE CONFIDENTIAL CONSULTATION at 1-877-777-7430.

Attorneys vs Accountants
Which is Best for You?

Resolving your tax debt typically has very little to do with accounting, and everything to do with building and presenting a strong case.

Most CPA’s have very little experience, if any, resolving back taxes. Our attorneys do nothing but resolve back taxes, day in and day out.

Negotiation and persuasive skills, not number-crunching skills, get the best results when it comes to resolving back taxes.

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The Trust Fund Recovery Penalty (TFRP) is a critical component of the United States’ tax enforcement system. It was established to ensure the collection of unpaid 941-employment taxes by holding specific individuals responsible for the accrual of employment taxes that stemmed from a business. This penalty has been the subject of a fair amount of

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