Trust Fund Recovery Penalties
As a business owner, you have a number of variables to consider when it comes to running your company. Among these many details is ensuring that you have enough money to pay the IRS the taxes you took out of your employees’ paychecks. If your business closed or simply doesn’t have the money to afford these taxes, you could become personally liable for a trust fund recovery penalty.
Buchalter & Pelphrey Attorneys At Law can provide the legal assistance business owners like you need when it comes to dealing with the IRS. If the IRS says you are responsible for a trust fund recovery penalty for unpaid payroll taxes, our attorneys may be able to help. We have helped previous clients clear their responsibility for these penalties by using a variety of legal techniques we’ve honed across more than 50 years of experience.
If you’re looking for a trust fund recovery penalty attorney in Brevard County who can help you handle the IRS, reach out to Buchalter & Pelphrey Attorneys At Law today. Contact our firm online or by calling (321) 320-6088 for a free case review.
What Is a Trust Fund Recovery Penalty?
A trust fund recovery penalty is the penalty a business owner can face for failing to pay trust fund taxes withheld from an employee’s paycheck. These taxes include income tax, Medicare, and Social Security payments. A trust fund recovery penalty is generally considered to be one of the most serious penalties the IRS can apply against business owners.
Who Can be Held Liable for a Trust Fund Recovery Penalty?
If you are facing a trust fund recovery penalty, it’s likely because the IRS believes you are responsible for collecting and paying trust fund taxes and have failed to do so. This means that business owners, executives, directors, employees, and even third-party payroll service providers, bookkeepers, and accountants can all be held personally liable for this penalty.
You may not be the only person in your company penalized by the IRS. Multiple people can get hit with trust fund recovery penalties. All the IRS needs to do is prove that someone was aware that trust fund taxes were due and willfully ignored them.
How Much Does a Trust Fund Recovery Penalty Cost?
Generally speaking, trust fund recovery penalties are equivalent to the amount of money owed to the IRS in unpaid trust fund taxes. This means that responsible parties can be personally liable for paying the IRS the unpaid taxes plus an equivalent amount as a penalty.
How Can I Fight a Trust Fund Recovery Penalty?
It may be possible to mitigate your responsibility for a trust fund recovery penalty. Our lawyers at Buchalter & Pelphrey Attorneys At Law are experienced legal advocates for clients who had to go up against the IRS in serious tax-related matters. Having a trust fund recovery attorney in Brevard County from our firm assist you with your legal situation can help you avoid or mitigate the consequences of this serious penalty.
For more information about how Buchalter & Pelphrey Attorneys At Law can help, contact us online and request a free case review.