DEFENDING EMPLOYERS FROM THE TRUST FUND RECOVERY PENALTY
A business that has employees is responsible for withholding income taxes and social security taxes from each employee. These withheld taxes are referred to as trust fund taxes because the employer is holding them in trust on behalf of the employee until the funds are sent to the IRS.
When the business fails to properly withhold the taxes from the employee, or fails to send the funds to the IRS, the IRS will seek to assess the trust fund recovery against every individual within the business who was responsible for withholding the taxes and failed to do so, or who withheld the taxes but failed to send the funds to the IRS. The amount of the penalty is equal to the withheld income taxes and social security taxes.
AN EXPERIENCED TAX LAWYER CAN APPEAL THE IMPOSITION OF THE TRUST FUND RECOVERY PENALTY
Under the law, a taxpayer against whom the IRS is attempting to assess the trust fund recovery penalty has the right to appeal the proposed assessment. The time to appeal is limited so it is important that the taxpayer contact a knowledgeable tax lawyer as soon as possible.
If an appeal is not presented, or the appeal is lost, the IRS will assess the trust fund recovery penalty against each responsible individual. Once the assessment is made, the individual becomes personally liable for the withheld income and social security taxes owed by the business. Although the IRS can only collect the trust fund recovery penalty once, it can seek collection not only from the business but also from all individuals who have been found to be responsible. The trust fund recovery penalty cannot be discharged in bankruptcy.
Attorney Magda Abdo-Gomez has been representing taxpayers for over 30 years and has filed numerous trust fund recovery penalty assessment appeals against the IRS. She can represent taxpayers in South Florida from her office in Miami. She can also represent taxpayers wherever they are located and has represented clients throughout the United States and Florida.
Call lawyer Magda Abdo-Gomez at 305-559-7478 or contact her online to see how she can help you contest the assessment of the trust fund recovery penalty.