As a former IRS Agent and instructor for over 35 years, I have hundreds of IRS Trust Fund Cases.
Call me for free initial tax consultation and I will help you deal with your trust fund tax debt.
Each is very unique. With that said, there are some common law factors that a Revenue Officer uses to determine the responsible officer(s).
Trying to get the truth can be challenging. People dislike each other, families break up and at one meeting a fist fight broke out. One rule of thumb the IRS will use, the documents do not lie.
So lets get started.
A trust fund recovery case begins with unpaid 941 payroll taxes from a corporation. After some period of time, the IRS computer catches up with the unpaid 941s on corporate cases.
These cases are always sent to the field for an examination of the trust fund recovery penalty.
After a series of notices ( tax bills ) are sent out to the corporation, the case eventually works its way out to the field where an IRS Revenue Officer is assigned the case. After the Revenue Officers goes through necessary office checks, a field call is usually set up to visit the taxpayer ( corporation ) at their place of business. After the visit the Revenue Officer will normally make demand for the tax to be paid in full or work out some sort of payment plan. In most of these cases payment cannot be made in full to pay the IRS tax liability. In these situations, the Revenue Officer normally makes a decision that the best way to secure the governments interest is to make sure that the corporate officers who are responsible for paying the tax are set up with an individual liability to pay these 941 taxes. This is called setting up the trust fund liability.
These assessment become linked with the individuals. The assessments are made as though you would owe personal income tax. The code section that deals with this administrative procedure is Section 6672. Multiple individuals may be set up as responsible parties.
The revenue officer goes through a number of items to determine who is responsible. After 10 years on the job, it does not take a long time for the IRS Agent to figure this out. It is obvious who the responsible parties usually are. Below are some of the check lists used.
Step #1 – Find out who is responsible is to follow the money. That is who signed checks and who benefited from profits. The Internal Revenue Service is looking for who controlled the money. The IRS can ask the company to cooperate by asking for checks to review signatures. Or, the IRS can directly summons the bank to see who is on the bank signature cards and who signed the majority of the business checks. This usually points them in the right direction.
Step #2 – Who signed the 941’s, who is responsible for the preparation and signing of the tax forms. Anyone in the chain of events that had knowledge or authority may be held liable by the IRS. The fear of the IRS agent asking a companies staff questions can be very unnerving and the IRS agents on these types of cases are trained to get to the truth.
Step #3 – Who is really in charge. At the end of the day, someone is the decision maker. Who really is that. Who really controlled the operations of the company.
Step#4 – Who has the right to hire and fire. Whoever had this responsibility had a lot of influence in the company.
Step #5. – Who had the right to determine financial policy. In other words, who talked with the bank. The bank knows the true officers of the said corporation.
Step #6. – Who has the right to authorize all bills and pay other creditors. When you get to this point it starts to get real obvious who the responsible officers are.
Step#7 – Who had the right to open and close the bank accounts. Only the true officers of the corporation had this authority.
Step#8 – Who guaranteed or co-signed loans. Only someone who had a true vested interest in the company would want to do this.
Step #9. – Who authorized payroll. Even though this can be delegated to anyone, usually responsible person have an interest in this function.
Step #10 – Who could sign the corporation tax return. This is true evidence of responsibility.
If the IRS does not find out who is responsible after this process, they will query the neighboring businesses or the landlord about who seemed in control. Usually, they all come up with the same person.
By the way, whoever signed the lease, is usually a good choice. Another thing the IRS agent uses are the corporate resolutions found at the bank.
IRS also uses a Form 4180 which is collection interview form that is several pages of questions. Upon completion, the agent can make the determination easily.
As a former agent, everyone wants to blame the other person, a real who done-it. It is always someone else’s fault.
A key tip for persons that might be be reading this is that if you are in trouble or heading that way contact a professional to represent you. We at Fresh Start Tax are experienced in these types of IRS Cases.
Another tip is if you are making tax payments, write on each check to IRS, “monies to be applied to trust-fund only”. If you do that, each payment will be applied to the trust fund tax and not go to penalties and interest. A final tip, if you do not like the revenue officers findings, you can always take your case to appeals.
Non-filers, never filed, old and past due tax returns
all back tax issues/ settle IRS debt
How we work your case to immediately start to solve and settle you IRS tax problem on your back tax issues
1. We immediately send a power of attorney to the IRS letting them know we are now your tax representative.
You will never have to speak to the IRS.
2. We will make sure your tax returns are filed and current. If your tax returns are not up to date, IRS will refuse to work your case. This is leverage that the IRS uses to get you compliant. Lost tax records, no problem. We can pull tax transcripts, file and prepare your tax returns within days.
3. IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. IRS will require a closing settlement method for each case.
4. IRS Settlement agreements/programs can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs IRS uses for the lowest possible amount required.
c. Offer in Compromise/IRS Settlements. There are three types of OICs:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists.
Do your homework before hiring a Professional Tax Firm. Make sure they have on staff Board Certified Tax Attorneys, Lawyers, CPAs, Former IRS Agents and Managers. Also, check the following to ensure the creditability and history of the Tax Firm.
Affordable Fresh Start Tax LLC “A” Plus Rated by the Better Business Bureau
We are true IRS Tax Experts
Over 140 years of professional tax experience and over 25 of working experience at the IRS.
There is no tax firm as fast as Fresh Start Tax LLC in getting you immediate and permanent IRS tax relief on IRS Tax Levies on Wage Garnishments or Bank Levies.
The IRS Bank Levy 668A.
The bank must hold the levy for 21 days before releasing the funds to the IRS. This time is calculated from the date the bank receives the levy.
A Wage Garnishment 668W.
A continuous levy or seizure. It will not be released until IRS formally issues the release.It will occur every paycheck.
As former IRS Agents of 60 years we know exactly how to save time and get the job done quickly.
How we immediately get Notices of Wage Levy and Bank Garnishment Levies Released.
As former IRS Agents, Managers and Instructors we have issued thousands of IRS Wage/Garnishment and Bank Levies. We know exactly how to quickly get them released. We have what it takes.
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to them.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
Settlement agreements can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. Offer in Compromise. There are three types of OICs:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists.
Call us for a free tax consultation. Free video conferencing is also available.
Affordable Fresh Start Tax LLC A Professional Tax Firm practicing IRS Tax Law and IRS Tax Relief since 1982.
“A” Plus Rated by the Better Business Bureau
If you need immediate and permanent tax relief, tax help on your back taxes call us for a free tax consultation today.
We have over 140 years of professional tax experience and over 60 years of working for the IRS.
We are comprised of Board Certified Tax Attorneys, CPAs and most importantly former IRS Agents, Managers and Instructors who taught IRS Tax Law at the IRS.
You can have a former IRS tax manager work and successfully close your tax case.
Hire the most knowledge professional tax staff. Get rid of your case once and for all.
Immediate Tax Representation
Offers in Compromise/Settlements
Immediate Release of Bank Garnishments or Wage Levies
IRS Notices/Bill of Intent to Levy or Final Notices
Affordable Fresh Start Tax LLC “A” Plus Rated by the Better Business Bureau, Former IRS
A Professional Tax Firm- IRS Tax Experts Practicing IRS Tax Law since 1982
We can get your tax levy, bank levy or wage garnishments released within 24 hours.
We can get immediate and permanent tax relief.
Why us?
We are former IRS Agents, Managers and Instructors who taught at the Internal Revenue Service. We know every tax strategy and telephone number necessary to get you immediate IRS tax relief.
We are one of the oldest and most trusted and experienced tax firms. We are true IRS tax experts.
Send us your levy today and we can start the process.
How we immediately get Notices of Wage Levy and Bank Garnishment Levies Released.
As former IRS Agents, Managers and Instructors we have issued thousands of IRS Wage/Garnishment and Bank Levies. We know exactly how to quickly get them released. We have what it takes.
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to them.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
Settlement agreements can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. Offer in Compromise. There are three types of OICs:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists.
Call us for a free tax consultation. Free video conferencing is also available.
Affordable Fresh Start Tax LLC “A” Plus Rated by the Better Business Bureau
A Professional Tax Firm practicing IRS Tax Debt Settlements since 1982
If you are really serious about settling your IRS Tax Debt on back taxes you can hire former IRS Agents, Managers and Instructors that taught all the programs at the IRS for settling back taxes.
We have 60 years of IRS teaching experience. A former IRS Agent, Manager or Instructor will work and settle your tax case.
Why would you let any one else work your tax case.
We are one of the oldest, most experienced and trusted tax firms when it come to immediate and permanent tax relief.
I
RS Tax Debt Settlements ” The Process “
How we work your case to immediately resolve your IRS matter:
1. We immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS.
2. We will make sure your tax returns are filed and current. If your tax returns are not up to date, IRS will refuse to work your case. This is leverage that the IRS uses to get you compliant. Lost tax records, no problem. We can pull tax transcripts, file and prepare your tax returns within days.
3. IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. IRS will require a closing settlement method for each case.
4. IRS Settlement agreements/programs can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs IRS uses for the lowest possible amount required.
c. Offer in Compromise/IRS Settlements. There are three types of OICs:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct.
3. Effective Tax Administration – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists.
Do your homework before hiring a Professional Tax Firm. Make sure they have on staff Board Certified Tax Attorneys, Lawyers, CPAs, Former IRS Agents and Managers. Also, check the following to ensure the creditability and history of the Tax Firm.
