Tag Archives: trust fund recovery penalty

Employment Taxes and the Trust Fund Recovery Penalty: What You Need to Know — Part II

Totaling 100 percent of unpaid employment and federal taxes, the TFRP is not to be taken lightly. In this segment of our three-part series on this devastating penalty, we highlight the assessment process and its implications. How is the TFRP assessed? As soon as the IRS determines that employment taxes have remained willfully unpaid, a […]

FAQ About the Trust Fund Recovery Penalty During COVID

Life goes on during a pandemic — and that includes tax confusion and frustration. While deferrals gave many people temporary respite from their IRS concerns, the usual tax drama is now back in full force. The Trust Fund Recovery Penalty (TFRP), in particular, is a major source of anxiety among those already struggling with the […]

Can the IRS Force You to Use Personal Assets to Pay Off TFRP For Your Business?

If you’ve been assessed the trust fund recovery penalty (TFRP), you’re likely worried about how the IRS will proceed and whether your assets might be at risk. Multiple approaches are available for retrieving the value of unpaid employment taxes, but asset seizure is among the most alarming. As you determine the best strategy for handling […]

What Is the Trust Fund Recovery Penalty? What Does It Mean For You?

If you’re a business owner or are otherwise in charge of payroll, you have a huge responsibility: withholding, accounting for, and appropriately depositing taxes on employees’ income. Should you fail to appropriately carry out these essentials, you could be held personally liable. The IRS addresses issues such as withholding and paying taxes through the trust […]

Everything You Need to Know About the Trust Fund Recovery Penalty (IRS Form 941)

It’s no secret that, as an employer, you’re supposed to file IRS Form 941 on time — and pass on withheld employment taxes to the IRS. If you fail to pay these taxes on time, you may be subject to the Trust Fund Recovery Penalty (TFRP). Designed by Congress to encourage prompt payment, the TFRP […]