by Fresh Start Tax | Dec 7, 2015 | Tax Help
Call us today and hear the truth about your IRS trust fund problems, since 1982. Tax Defense Services: Appeals, Negotiation & Tax Debt Settlements 1-866-700-1040
We are true to trust fund recovery penalty tax defense experts.
We have over 65 years of direct working experience in the local, district, and regional tax offices of the IRS.
We are true IRS experts and specialists in trust fund tax and back tax issues. We have over 206 years of professional tax experience in dealing with IRS tax issues and problems.
Being a former IRS agent in teaching instructor I have worked hundreds and hundreds of trust fund recovery penalty cases. We are true experts when it comes to affordable tax defense for any payroll tax issue.
Our firm represents those who need to file appeals or want to settle their tax debt is result of trust fund recovery problems. There are the various type of solutions that after a quick review of your case we can provide different settlement options.
Do not be bullied by the Internal Revenue Service call us today for a free initial tax consultation and hear what true experts have to say about your situation. Being former IRS agents we understand the bullying techniques used by the Internal Revenue Service.
We take no case unless we can provide immediate and permanent tax relief. We’ve been in private practice since 1982 and over 206 years of professional tax experience.
What are Trust Fund Taxes, 6672 penalty, Why will IRS Go After You
If you are one of the individuals responsible to pay the payroll tax debt IRS will look to you to pay the uncollected trust fund taxes. why, read below.
A trust fund tax is money withheld from an employee’s wages (income tax, social security, and Medicare taxes) by an employer and held in trust until paid to the Treasury.
When you pay your employees, you do not pay them all the money they earned. As their employer, you have the added responsibility of withholding taxes from their paychecks.
The income tax and employees’ share of FICA (social security and Medicare) that you withhold from your employees’ paychecks are part of their wages you pay to the Treasury instead of to your employees.
Your employees trust that you pay the withholding to the Treasury by making Federal Tax Deposits (PDF). That is why they are called trust fund taxes.
Through this withholding, your employees pay their contributions toward retirement benefits (social security and Medicare) and the income taxes reported on their tax returns. Your employees’ trust fund taxes, along with your matching share of FICA, are paid to the Treasury through the Federal Tax Deposit System.
The withheld part of these taxes is your employees’ money, and the matching portion is their retirement benefit. For additional information, refer to Employment Taxes and the Trust Fund Recovery Penalty.
Depending on where your cases in the system we will review with you the various options that you have to fully resolve the trust fund recovery penalty.
Even if the IRS is made an assessment against you and we feel that IRS to set you up erroneously, we can file an offer in compromise doubt as to liability.
If you owe the tax we will look at a way to negotiate your tax by putting into to a current hardship, payment agreement or getting IRS to accept an offer in compromise if you are a qualified and suitable candidate for this negotiation.
Preparing a Request for Appeals
If you disagree with the IRS’s determination, you may request an Appeals conference by filing a written protest.
To decide if you should appeal your tax dispute, consider the following:
• If you believe the IRS made an incorrect decision based on a misinterpretation of the law, check the publications discussing your issue(s), or refer to Tax Topics.
• If you believe the IRS did not properly apply the law due to a misunderstanding of the facts, be prepared to clarify and support your position.
• If you believe the IRS is taking inappropriate collection action against you, or your offer in compromise was denied and you disagree with that decision, be prepared to clarify and support your position.
• If you believe the facts used by the IRS are incorrect, then you should have records or other evidence to support your position.
Appeals & Protests
A formal written protest is required in all cases to request an Appeals conference, unless you qualify for the Small Case Request procedure discussed below or another special appeal procedure.
How to file a Formal Written Protest
Include all of the following:
1. Your name, address, and a daytime telephone number.
2. A statement that you want to appeal the IRS findings to the Office of Appeals.
3. A copy of the letter you received that shows the proposed change(s).
4. The tax period(s) or year(s) involved.
5. A list of each proposed item with which you disagree.
6. The reason(s) you disagree with each item.
7. The facts that support your position on each item.
8. The law or authority, if any, that supports your position on each item.
9. The penalties of perjury statement as follows: “Under the penalties of perjury, I declare that the facts stated in this protest and any accompanying documents are true, correct, and complete to the best of my knowledge and belief.”
10. Your signature under the penalties of perjury statement.
If your representative prepares and signs the protest for you, he or she must substitute a declaration for the penalties of perjury statement that includes:
1. That he or she submitted the protest and any accompanying documents, and
2. Whether he or she knows personally that the facts stated in the protest and any accompanying documents are true and correct.
You must send your formal written protest within the time limit specified in the letter that offers you the right to appeal the proposed changes. Generally, the time limit is 30 days from the date of the letter.
How to file a Small Case Request
You may submit a Small Case Request if the entire amount of additional tax and penalty proposed for each tax period is $25,000 or less. For an offer in compromise, the entire amount for each tax period includes total unpaid tax, penalty and interest due.
Note: Employee plan, exempt organizations, S corporations and partnerships are not eligible for Small Case Requests.
1. Follow the instructions in the letter you received.
2. Use Form 12203, Request for Appeals Review, or the form referenced in the letter to file your appeal, or prepare a brief written statement. List the disagreed item(s) and the reason(s) you disagree.
Call us today for free initial tax consultation and hear the truth about your case and the different settlement and appeals processes.
We can provide you excellent affordable tax defenses the trust fund issues. We are a full service tax firm with expertise in IRS problems especially trust fund penalty assessments.
IRS Trust Fund Recovery Penalty Appeal + IRS Tax Defense Appeal Services + Specialists + Affordable Former IRS
by Fresh Start Tax | Dec 7, 2015 | Tax Help
Have former IRS agents and managers provide your best possible trust fund tax defense. Since 1982, Affordable.
We have dealt with hundreds and hundreds of trust fund penalties and are true tax experts in dealing with trust fund tax defense.
We have over 206 years of professional tax experience, over 65 years of directly working for the Internal Revenue Service and the local, district, and regional tax offices of the IRS. We are true experts for the trust fund recovery penalty. We can provide your best possible tax defense.
If IRS is trying to hold you responsible for a trust fund penalty, fight back today.
The sole purpose of the 2751 and form 1153DO is to let you know IRS is proposing a tax assessment against you as a responsible person holding you liable to pay the back trust fund tax because they feel you are responsible person under section 6672 of the IRC code.
The IRS is found that certain factors have made you a responsible party. See below the possible determining factors.
Some of the determining factors used to find individuals liable for this penalty are as follows:
1. Which individuals determine financial policy?
2. Which individuals authorize payment of bills?
3. Which individuals opens or closes bank accounts?
4. Which individuals signs checks?
5. Which individuals authorizes payroll?
6. Which individuals makes tax deposits?
7. Which individuals sign tax returns?
8. Which individuals oversee the hiring & termination of employees?
9. Which individuals run business on a day-to-day basis?
The IRS will review these answers based on sufficient documentation.
Do not let this trust fund penalty happen. Fight it at all costs.
We can fight this or appeal this proceeding today. We are former IRS agents who have worked thousands of these cases. We know all the tax strategies.
Letter 1153 – Trust Funds Recovery Penalty Letter
This letter explains that the IRS’s efforts to collect the federal employment or excise taxes due from the business named on the letter have not resulted in full payment of the liability.
Therefore, the IRS proposes to assess a penalty against you.
If you do not agree you can submit a request for appeal/protest to the office/individual that sent you the letter.
The letter or referenced publications explain how you file a protest.
You need to file your protest within 60 days from the date of the letter in order to appeal this decision with the Office of Appeals.
Fresh Start Tax is one of the premier tax resolutions firms in the country.
We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations.
We have staff that specializes in every facet of the Internal Revenue Service.
We know all the IRS strategies. Some of our many specialties include the following:
Immediate Tax Representation
Offers in Compromise/Settlements
Back Tax Relief
Bank Garnishments or Tax Levies
Wages Garnishments or Levies
IRS Notices of Intent to Levy or Final Notices
IRS Tax Audits
Hardships Cases, Payment Plans
Innocent Spouse
Abatement of Penalties and Interest
State Sales Tax Cases
Trust Fund Penalty Cases/ 6672
Our Company Resume:
Our staff has over 206 years of professional tax representation experience collectively
On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents, Former IRS Manager, Instructor and Trainers
Highest Rating by the Better Business Bureau ” A “Plus
Extremely ethical and moral principles used
Fast, affordable, and economical
Licensed to practice in all 50 States
Premium on client communication
Nationally Recognized Veteran Former IRS Agent
Nationally Recognized Published Tax Expert
IRS Notice Letter 2751 & 1153 DO + Former IRS Trust Fund Tax Defense Services + Since 1982
by Fresh Start Tax | Dec 7, 2015 | Tax Help
We are an “affordable professional tax firm” with an expertise in IRS tax problems including trust fund help, IRS specialists expert representation.
As a former IRS agent in teaching instructor, I have worked hundreds and hundreds of cases involving trust fund taxes both the assessments, the appeals and the collections.
I cannot possibly tell you how many form 4180’s I have filled out.
I know all the inner workings of the IRS, all their methodologies, all their settlements and their exact thought processes of the trust fund recovery penalty, 4180 and the assessments thereafter. We can help stop IRS in their tracks.
Being a former IRS teaching instructor I taught this program to new IRS employees.
Any taxpayer going to this process should seek professional representation unless this is a very simple case and you can be rest assured IRS will not even think about holding you as a responsible person.
Call us today for a free initial tax consultation and I will walk you through the process of getting the best possible result giving the facts and circumstances of your case.
I would caution any taxpayer never give IRS a form 4180 unless they have had a true professional review the answers.
This 4180 interview form is one of the main forms that IRS uses to make a determination the trust fund recovery penalty.
You do not want to do this by yourself because of damaging result the trust fund penalty will have on your life.
This assessment will be individually made against you and IRS has the fertile arsenal to collect the taxes. If possible you want to file an appeal if you have a suitable case.
Why File an Appeal if the IRS is already proposed the notice of assessment.
Filing an appeal will delay the assessment of this case and make sure more importantly that IRS finds responsibility against other parties and the cases all come out at the same time for collection.
It also stops the interest from running on this tax debt until an assessment is actually made.
Some cases are very simple and taxpayers can represent themselves.
As a general rule you should know that the IRS wants to make everybody responsible that they can so they can fully collect the tax. IRS will do their best to force the issue on trust fund recovery penalties.
Their philosophy, set up everybody for this tax, the more responsible, the merrier. you should also know this is not a divisible tax.
The IRS goes after everyone for the full amount of the tax until the taxes collected. Once the taxes collected IRS will be abate the balance is due on the other taxpayers.
Call us today and we will review your case and let you know exactly where you stand and let you know how to get the best possible results.
How IRS will Work the Case
1. Regardless of the amount of the trust fund, revenue officers will make a reasonable attempt to collect the entire liability in full. IRS will conduct a full asset search of the company including bank statements reviewing individual and personal and corporate income tax returns and do a full asset search.
2. Potential for additional liabilities from unfiled returns, IRS will conduct a full compliance check on both business and individuals.
3. IRS will conduct the Taxpayer’s history of non-compliance that extends beyond the open balance due accounts.
4. Responsible person’s history of employment tax non-compliance. IRS will want to know if you are repeat offender. Sometimes repeat offenders are refer to the criminal investigation unit for criminal enforcement.
5. A seasoned revenue officer can get in and out of these cases real quick. Having a seasoned tax professional can get you the very best possible tax result.
The IRS uses a number of determining factors to find out who is responsible for the trust fund penalties. See below some of the determining factors.
Some of the determining factors used to find individuals liable for this penalty are as follows:
1. Which individuals determine financial policy?
2. Which individuals authorize payment of bills?
3. Which individuals opens or closes bank accounts?
4. Which individuals signs checks?
5. Which individuals authorizes payroll?
6. Which individuals makes tax deposits?
7. Which individuals sign tax returns?
8. Which individuals oversee the hiring & termination of employees?
9. Which individuals run business on a day-to-day basis?
The IRS will review these answers based on sufficient documentation.
Additional Actions IRS will Consider, IRS will look to collect the tax liability in full and they have other options.
The goal of IRS is to collect the money in full many times taxpayers trying to wiggle away at around this tax and start moving assets around. the IRS knows the tricks and secrets that are used by taxpayers and will do a full investigation to find out if this is the case.
1. Certain facts may surface indicating that transfers of corporate stock and/or capital assets have occurred. If this is the case, in addition to pursuing the TFRP, consider recovery of the unpaid corporate liability by recommending:
• IRS Transferee assessment
• Suit to establish a transferee liability
• Suit to set aside a fraudulent transfer
• IRS Examination referrals
It is not hard for the internal revenue for service to find out who responsible parties are. The most damaging one piece of information are the bank signature cards and those persons responsible for making day-to-day decisions.
Those are the basic starting point the trust fund recovery penalty.
Call us today for free initial tax consultation and we will walk you through the process of how IRS works to trust one recovery penalties, form 4180, form 2751 and how to get your best achievable result in dealing with the Internal Revenue Service for trust fund penalty issues.
IRS Form 4180 + What You Need to Know + How to Handle the Trust Fund Recovery Interview + Former IRS
by Fresh Start Tax | Dec 7, 2015 | Tax Help
We are an “affordable professional tax firm” with an expertise in IRS tax matters including trust fund help an expert representation. Call us before the 4180 interview.
As a former IRS agent in teaching instructor, I have worked hundreds and hundreds of cases involving trust fund taxes both the assessments, the appeals and the collections.I cannot possibly tell you how many form 4180’s I have filled out.
I know all the inner workings of the internal revenue services, all their methodologies, all their settlements and their exact thought processes of the trust fund recovery penalty, 4180 and the assessments thereafter.
Being a former IRS teaching instructor I taught this program to new IRS employees.
There are many trick questions on form 4180.
Any taxpayer going to this process should seek professional representation unless this is a very simple case and you can be rest assured IRS will not even think about holding you as a responsible person.
Call us today for a free initial tax consultation and I will walk you through the process of getting the best possible result giving the facts and circumstances of your case.
I would caution any taxpayer never give IRS a form 4180 unless they have had a true professional review the answers.
That form is one of the main forms that IRS uses to make a determination the trust fund recovery penalty.
You do not want to do this by yourself because of damaging result the trust fund penalty will have on your life.
This assessment will be individually made against you and IRS has the fertile arsenal to collect the taxes. If possible you want to file an appeal if you have a suitable case.
Filing an appeal will delay the assessment of this case and make sure more importantly that IRS finds responsibility against other parties and the cases all come out at the same time for collection. It also stops the interest from running on this tax debt until an assessment is actually made.
Some cases are very simple and taxpayers can represent themselves.
As a general rule you should know that the IRS wants to make everybody responsible that they can so they can fully collect the tax. IRS will do their best to force the issue on trust fund recovery penalties.
Their philosophy, set up everybody for this tax, the more responsible, the merrier.
Call us today and we will review your case and let you know exactly where you stand and let you know how to get the best possible results.
How IRS will Work the Case
1. Regardless of the amount of the trust fund, revenue officers will make a reasonable attempt to collect the entire liability in full. IRS will conduct a full asset search of the company including bank statements reviewing individual and personal and corporate income tax returns and do a full asset search.
2. Potential for additional liabilities from unfiled returns, IRS will conduct a full compliance check on both business and individuals.
3. IRS will conduct the Taxpayer’s history of non-compliance that extends beyond the open balance due accounts.
4. Responsible person’s history of employment tax non-compliance. IRS will want to know if you are repeat offender. Sometimes repeat offenders are refer to the criminal investigation unit for criminal enforcement.
5. A seasoned revenue officer can get in and out of these cases real quick. Having a seasoned tax professional can get you the very best possible tax result.
The IRS uses a number of determining factors to find out who is responsible for the trust fund penalties. See below some of the determining factors.
Some of the determining factors used to find individuals liable for this penalty are as follows:
1. Which individuals determine financial policy?
2. Which individuals authorize payment of bills?
3. Which individuals opens or closes bank accounts?
4. Which individuals signs checks?
5. Which individuals authorizes payroll?
6. Which individuals makes tax deposits?
7. Which individuals sign tax returns?
8. Which individuals oversee the hiring & termination of employees?
9. Which individuals run business on a day-to-day basis?
The IRS will review these answers based on sufficient documentation.
Additional Actions IRS will Consider
The goal of IRS is to collect the money in full many times taxpayers trying to wiggle away at around this tax and start moving assets around. the IRS knows the tricks and secrets that are used by taxpayers and will do a full investigation to find out if this is the case.
1. Certain facts may surface indicating that transfers of corporate stock and/or capital assets have occurred. If this is the case, in addition to pursuing the TFRP, consider recovery of the unpaid corporate liability by recommending:
• Transferee assessment
• Suit to establish a transferee liability
• Suit to set aside a fraudulent transfer
• Examination referral
It is not hard for the internal revenue for service to find out who responsible parties are. The most damaging one piece of information are the bank signature cards and those persons responsible for making day-to-day decisions. Those are the basic starting point the trust fund recovery penalty.
Call us today for free initial tax consultation and we will walk you through the process of how IRS works to trust one recovery penalties, form 4180, form 2751 and how to get your best achievable result in dealing with the Internal Revenue Service for trust fund penalty issues.
IRS Form 4180 + What You Need to Know + How to Handle the Trust Fund Recovery Interview + Former IRS
by Fresh Start Tax | Dec 7, 2015 | Tax Help
We are an affordable professional tax firm with an expertise in IRS tax matters including trust fund help an expert representation. Call us before the 4180 interview.
As a former IRS agent in teaching instructor, I have worked hundreds and hundreds of cases involving trust fund taxes both the assessments, the appeals and the collections.
I cannot possibly tell you how many form 4180’s I have filled out.
There are many trick questions on form 4180. Any taxpayer going to this process should seek professional representation unless this is a very simple case and you can be rest assured IRS will not even think about holding you as a responsible person.
Call us today for a free initial tax consultation and I will walk you through the process of getting the best possible result giving the facts and circumstances of your case.
I would caution any taxpayer never give IRS a form 4180 unless they have had a true professional review the answers.
That form is one of the main forms that IRS uses to make a determination the trust fund recovery penalty.
You do not want to do this by yourself because of damaging result the trust fund penalty will have on your life.
This assessment will be individually made against you and IRS has the fertile arsenal to collect the taxes. If possible you want to file an appeal if you have a suitable case.
Filing an appeal will delay the assessment of this case and make sure more importantly that IRS finds responsibility against other parties and the cases all come out at the same time for collection. It also stops the interest from running on this tax debt until an assessment is actually made.
Some cases are very simple and taxpayers can represent themselves.
As a general rule you should know that the IRS wants to make everybody responsible that they can so they can fully collect the tax. IRS will do their best to force the issue on trust fund recovery penalties.
Their philosophy, set up everybody for this tax, the more responsible, the merrier.
Call us today and we will review your case and let you know exactly where you stand and let you know how to get the best possible results.
How IRS will Work the Case
1. Regardless of the amount of the trust fund, revenue officers will make a reasonable attempt to collect the entire liability in full. IRS will conduct a full asset search of the company including bank statements reviewing individual and personal and corporate income tax returns and do a full asset search.
2. Potential for additional liabilities from unfiled returns, IRS will conduct a full compliance check on both business and individuals.
3. IRS will conduct the Taxpayer’s history of non-compliance that extends beyond the open balance due accounts.
4. Responsible person’s history of employment tax non-compliance. IRS will want to know if you are repeat offender. Sometimes repeat offenders are refer to the criminal investigation unit for criminal enforcement.
Some of the determining factors used to find individuals liable for this penalty are as follows:
1. Which individuals determine financial policy?
2. Which individuals authorize payment of bills?
3. Which individuals opens or closes bank accounts?
4. Which individuals signs checks?
5. Which individuals authorizes payroll?
6. Which individuals makes tax deposits?
7. Which individuals sign tax returns?
8. Which individuals oversee the hiring & termination of employees?
9. Which individuals run business on a day-to-day basis?
The IRS will review these answers based on sufficient documentation.
Additional Actions IRS will Consider
The goal of IRS is to collect the money in full many times taxpayers trying to wiggle away at around this tax and start moving assets around. the IRS knows the tricks and secrets that are used by taxpayers and will do a full investigation to find out if this is the case.
1. Certain facts may surface indicating that transfers of corporate stock and/or capital assets have occurred. If this is the case, in addition to pursuing the TFRP, consider recovery of the unpaid corporate liability by recommending:
• Transferee assessment
• Suit to establish a transferee liability
• Suit to set aside a fraudulent transfer
• Examination referral
How the Trust Fund Recovery Interviews and Investigations take place.
1. During the initial contact with the taxpayer the revenue officer will attempt to conduct interviews with potentially responsible persons. The revenue officer will take the following actions during the interview:
A. IRS must Provide Publication 1, Your Rights as a Taxpayer, and document in the history the publication was delivered.
B. Explain the TFRP to the taxpayer.
C. IRS will present a copy of the TFRP calculation (Page 4 of Form 4183) Pre-Contact) to all potentially responsible persons and advise them the IRS can personally assess the TFRP against those it determines liable for the penalty for the unpaid trust fund amount and collect the liability from their personal income and assets.
D. Provide Notice 784, Could You Be Personally Liable for Certain Unpaid Federal Taxes?, to the person interviewed and provide sufficient copies of Notice 784 to allow distribution to all other persons associated with the business who, based on the interview and other preliminary investigation, may be liable.
E. Advise the person(s) being interviewed of the proper actions to take to avoid such liability.
F. Begin asking questions and securing core documentation items Evidence That May Support Recommendations) from the taxpayer in support of assertion of the penalty.
If the documents are not secured, establish deadlines for the information and documents.
G. Attempt to secure at least one Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes, from a potentially responsible person Evidence That May Support Recommendations).
Note:
Secure additional Forms 4180 from all potentially responsible persons to the extent possible.
What about the IRS Form 4180, IRS use:
Is the form to be used for conducting TFRP interviews.
It is intended to be used as a record of a personal interview with a potentially responsible person. During the initial contact, attempt to personally secure the form from potentially responsible persons.
2. The purpose of the personal interview and completion of Form 4180 is to secure direct, detailed information regarding the individual’s or other person’s involvement in the business in order to determine if he or she meets the criteria for responsibility.
3. IRS will not give or mail Form 4180 to the potentially responsible person(s) or representative for completion by that person or for review prior to the interview. The form must be completed in person or over the phone.
4. A summons may be necessary to require the potentially responsible person’s presence at the interview. IRS will deliver form 2039 in person to the taxpayer.
5. After the IRS revenue officer takes the 4180 interview and during the process they will be securing information from third parties, reviewing bank signature cards, review corporate resolutions, review financial statements and after speaking to a number of people they will make a determination as to those persons who are responsible.
As I said earlier in my blog , it is in your best interest to hire a true tax professional to walk you through this process.
If you think in any way shape or form you have questions as to your responsibility call us today for a free initial tax consultation and we will let you know if you should pursue the assessment or the appeal process.
IRS Form 4180 interview + Trust Fund Tax Assessment, IRS Tax Defense, Former IRS, Specialty Experts + Form 2751
by Fresh Start Tax | Dec 7, 2015 | Tax Help
We are an affordable professional tax firm with an expertise in IRS tax matters including trust fund help an expert representation
As a former IRS agent in teaching instructor, I have worked hundreds and hundreds of cases involving trust fund taxes both the assessments, the appeals and the collections.I cannot possibly tell you how many form 4180’s I have filled out.
Call us today for a free initial tax consultation and I will walk you through the process of getting the best possible result giving the facts and circumstances of your case.
I would caution any taxpayer never give IRS a form 4180 unless they have had a true professional review the form.
That form is one of the main forms that IRS uses to make a determination the trust fund recovery penalty.
You do not want to do this by yourself because of damaging result the trust fund penalty will have on your life. This assessment will be individually made against you and IRS has the fertile arsenal to collect the taxes. If possible you want to file an appeal if you have a suitable case.
Some cases are very simple and taxpayers can represent themselves.
True tax professional usually knows the ropes and has the experience to pull the trigger on what to do.
As a general rule you should know that the IRS wants to make everybody responsible that they can so they can fully collect the tax.
Their philosophy, set up everybody for this tax, the more responsible, the merrier.
Call us today and we will review your case and let you know exactly where you stand and let you know how to get the best possible results.
How IRS will Work the Case + Factors When Considering Trust Fund Balance Owed Amounts
1. Regardless of the amount of the trust fund, revenue officers will make a reasonable attempt to collect the entire liability in full. IRS will conduct a full asset search of the company including bank statements reviewing individual and personal and corporate income tax returns and do a full asset search.
2. Potential for additional liabilities from unfiled returns, IRS will conduct a full compliance check on both business and individuals.
3. IRS will conduct the Taxpayer’s history of non-compliance that extends beyond the open balance due accounts.
4. Responsible person’s history of employment tax non-compliance. IRS will want to know if you are repeat offender. Sometimes repeat offenders are refer to the criminal investigation unit for criminal enforcement.
Some of the determining factors used to find individuals liable for this penalty are as follows:
1. Which individuals determine financial policy?
2. Which individuals authorize payment of bills?
3. Which individuals opens or closes bank accounts?
4. Which individuals signs checks?
5. Which individuals authorizes payroll?
6. Which individuals makes tax deposits?
7. Which individuals sign tax returns?
8. Which individuals oversee the hiring & termination of employees?
9. Which individuals run business on a day-to-day basis?
The IRS will review these answers based on sufficient documentation.
Additional Actions to Consider
The goal of IRS is to collect the money in full many times taxpayers trying to wiggle away at around this tax and start moving assets around. the IRS knows the tricks and secrets that are used by taxpayers and will do a full investigation to find out if this is the case.
1. Certain facts may surface indicating that transfers of corporate stock and/or capital assets have occurred. If this is the case, in addition to pursuing the TFRP, consider recovery of the unpaid corporate liability by recommending:
• Transferee assessment
• Suit to establish a transferee liability
• Suit to set aside a fraudulent transfer
• Examination referral
How the TFRP Interviews and Investigations take place.
1. During the initial contact with the taxpayer the revenue officer will attempt to conduct interviews with potentially responsible persons. The revenue officer will take the following actions during the interview:
A. IRS must Provide Publication 1, Your Rights as a Taxpayer, and document in the history the publication was delivered.
B. Explain the TFRP to the taxpayer.
C. IRS will present a copy of the TFRP calculation (Page 4 of Form 4183) Pre-Contact) to all potentially responsible persons and advise them the IRS can personally assess the TFRP against those it determines liable for the penalty for the unpaid trust fund amount and collect the liability from their personal income and assets.
D. Provide Notice 784, Could You Be Personally Liable for Certain Unpaid Federal Taxes?, to the person interviewed and provide sufficient copies of Notice 784 to allow distribution to all other persons associated with the business who, based on the interview and other preliminary investigation, may be liable.
E. Advise the person(s) being interviewed of the proper actions to take to avoid such liability.
F. Begin asking questions and securing core documentation items Evidence That May Support Recommendations) from the taxpayer in support of assertion of the penalty.
If the documents are not secured, establish deadlines for the information and documents.
G. Attempt to secure at least one Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes, from a potentially responsible person Evidence That May Support Recommendations).
Note:
Secure additional Forms 4180 from all potentially responsible persons to the extent possible.
What about the IRS Form 4180, IRS use:
Is the form to be used for conducting TFRP interviews.
It is intended to be used as a record of a personal interview with a potentially responsible person. During the initial contact, attempt to personally secure the form from potentially responsible persons. If Form 4180 cannot be secured, document the case history with the reasons why it was not secured.
2. The purpose of the personal interview and completion of Form 4180 is to secure direct, detailed information regarding the individual’s or other person’s involvement in the business in order to determine if he or she meets the criteria for responsibility.
3. IRS will not give or mail Form 4180 to the potentially responsible person(s) or representative for completion by that person or for review prior to the interview. The form must be completed in person or over the phone.
4. A summons may be necessary to require the potentially responsible person’s presence at the interview. IRS will deliver form 2039 in person to the taxpayer.
5. After the IRS revenue officer takes the 4180 interview and during the process they will be securing information from third parties, reviewing bank signature cards, review corporate resolutions, review financial statements and after speaking to a number of people they will make a determination as to those persons who are responsible.
As I said earlier in my blog , it is in your best interest to hire a true tax professional to walk you through this process.
If you think in any way shape or form you have questions as to your responsibility call us today for a free initial tax consultation and we will let you know if you should pursue the assessment or the appeal process.
IRS Form 4180 + Trust Fund Penalty Help & Expert Representation + Former IRS Teaching Instructor
