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Trust Fund
Recovery Penalty Representation

A Trust Fund Recovery Penalty, or TFRP, is the collective name for a formal investigation the IRS conducts to assess and collect tax payment from a responsible person when a business has collected payroll taxes from employees, but failed to pay them to the IRS. Through this process, the IRS pierces the protection traditionally afforded to LLC's, Partnerships, and Corporations to hold an individual (or individuals) personally responsible for overseeing the withholding of taxes from employee paychecks, but failing to take actions on the behalf of the entity to ensure the taxes were turned over to the federal government.

Trust Fund Recovery Penalty Representation
Trust Fund Recovery Penalty Representation

There are several people in and around the business who may be assessed a TFRP including, but not limited to:

  • Business Owner(s)
  • Officers & Directors
  • Cashiers
  • Bookkeepers
  • Accountants
  • Other Individuals Responsible for Failure to Deposit Trust Fund Monies to the IRS
  • Partnerships (state-dependent)

If you have been assessed the personal responsibility of a TFRP, you can appeal the penalty if you believe it to be an incorrect assessment, or, if you accept the penalty, you can address the debt through one of the resolution options available. Whatever path you take, it is worth seeking representation from a qualified tax representative like Golden Lion Tax Solutions. We can be your guide through this lengthy and intimidating process, and find the best tax debt resolution to suit your needs.

Disclaimer: There are requirements that must be satisfied in order to qualify for some of the tax solutions we discuss on our website. Not all of our services will be suitable for every client. Golden Lion Tax Solutions is here to help you find the most appropriate resolution strategy to fit your situation.