“If you have received notice that you may be liable for trust fund taxes, you need an experienced tax attorney by your side. These types of penalties can pierce the corporate veil and the government can seek collection of the tax from your personal assets.”
- Alyssa Maloof Whatley
Pro Tip:
You’re not the only one at risk.
Because of the serious nature of this tax debt, multiple people inside and outside of a business can be deemed to be responsible for restoring the trust funds.
“The IRS still needs to make the determination that the failure to pay was a deliberate or willful act. The IRS will vigorously investigate all trust fund cases to ensure that the person – or people – knew the taxes were due and was aware the taxes remain unpaid.”
- Alyssa Maloof Whatley
How Much Is The Trust Fund Recovery Penalty?
The Trust Fund Recovery Penalty is equal to the unpaid income taxes withheld plus the employee’s portion of the withheld FICA taxes.
It doesn’t take long for the TFRP to become a staggering debt.
“As a CPA, I have worked closely with Alyssa to help with my clients' complicated tax issues. She is very honest, detailed, and responsive and will hold a client's hand until the issue is resolved and provide honest and clear advice along the way. I've seen her greatly reduce client's tax liabilities.”
“From the moment I started working with Alyssa, my distress & blood pressure decreased and my confidence increased that all of this would be okay! Super smart, very knowledgeable, and just delightful to work with. I'm so relieved and encouraged!”
“Alyssa and her team were fast, to the point and so professional with handling an issue I had with the IRS! She promised that the situation would be handled and in just a few short weeks she delivered on that promise. Thank you so much!”
“I find this attorney to be very honest and willing to assist her clients by guiding them in the right direction. I would recommend her to anyone that has a question on matters of her expertise. She is very knowledgeable and a pleasure to work with.”
“Alyssa is an amazing attorney! She is knowledgeable, efficient, and effective! Also, she is quick to respond, extremely pleasant, and very reassuring. We are so grateful for her expertise and help! Highly recommend!”
“Alyssa has helped me and my parents with an overwhelming tax issue. Something we never thought could be done. She's so kind, patient, thorough and knows tax law. I'd recommend her 100% to anyone when it comes to dealing with the IRS.”
“When I first spoke to Alyssa I was facing an IRS Audit for two years at the same time and felt extremely overwhelmed. Alyssa outlined a solid approach and was very easy to talk to and understand. My tax liabilities were brought down by 50%.”
“I was reluctant to reach out due to all the previous calls to other offices who where going to charge me more than what I owed on my taxes. I spoke with the Alyssa, she was very nice and it did not feel like a sales call. She helped me understand the type of letter I received and patient assisting me.”
“If you need legal assistance with your taxes, I strongly recommend Alyssa. Receiving a large tax notice from the IRS was very scary. Alyssa’s calm and level-headed demeanor helped ease my concerns. She responded quickly to my questions and knew just what to do.”
Can I Settle A Trust Fund Recovery Penalty?
Despite the severity of the Trust Fund Recovery Penalty, there are options available to taxpayers who cannot make the payment in full. A qualified tax professional can give you guidance on your options which may include Offer In Compromise or setting up an installment plan.
It’s always better to assess your complete financial situation when working with the IRS. An experienced tax pro can help you by negotiating a settlement that works for you.
One thing to remember is that TFRP debt isn’t dischargeable in bankruptcy. It’s important to make arrangements with the IRS rather than get into a situation where they levy, seize, or attach a lien to your assets and property.
Is There A Statute Of Limitations On The Assesment Of The Trust Fund Recovery Penalty?
Yes, the general rule is that an assessment of the TFRP must be made within three years from the date a return is filed or the due date of the return (succeeding April 15th), whichever is later.
