Tax Counsel to Represent IRS Investigation of Responsible Persons
Recently, the IRS has been aggressive with companies that have payroll taxes. The IRS revenue officers are under strict orders to ensure that these companies do not accrue any further payroll taxes. Current compliance means that companies are current with their payroll taxes. If a company cannot stay in current compliance then you can expect the revenue officer to initiate collection action. Further, a pattern of failing to pay the withheld funds from the employees' checks may, in fact, subject you to criminal prosecution.
Part of the revenue officer's duties in dealing with companies which have payroll tax debt is to determine who the responsible persons are for the unpaid payroll taxes. These responsible persons will be held personally liable for the trust fund recovery penalty (TFRP) of the unpaid payroll tax.
The personal liability will be assessed even if the business closes or files bankruptcy. There are a number of tests to determine if a person will be considered a responsible person, including having an ownership interest or an officer in the business, knowledge of the unpaid tax, or having bank signatory authorization are just a few of the tests to determine responsible person status.
The trust fund recovery penalty is a civil penalty tax that cannot be discharged in bankruptcy. It is therefore is a very difficult tax to resolve. If you are faced with this problem then call Robert T. Leonard, Esq., CPA, for assistance. You need an experienced tax attorney at this very difficult time.
Call for an Initial Free Consultation
If a revenue officer has contacted you to determine whether you are a responsible person for the trust fund recovery penalty, call Robert T. Leonard directly at the Law Offices of Robert T. Leonard at 818-224-7935 or toll free at 888-408-9486, or fill out the online form on this website for a free, confidential, initial case consultation. We will review your case and your options with their respective benefits and drawbacks, and any alternatives to the legal process that you may have. My office accepts Visa, MasterCard, American Express and Discover as payment.