Our firm is comprised of former IRS Agents, Managers, and Instructors who worked for the IRS for a combined 60 years. We were the persons responsible for training other IRS Agents. We know all the tax strategies required to fight for these penalties against taxes: 720, 945, 1042, 8288, CT1.
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Is the IRS holding you responsible for the trust fund penalty?
Has the sent you tax form 1153 and want to propose a penalty under code section 6672? Appeal the proposed tax assessment the IRS wants to make against you for the trust fund penalty on tax for :945, 1042, 8288,CT1.
You have an opportunity to appeal these proposed assessments so take the 60 window of opportunity to fight this penalty.
Who Can Be Responsible for the Trust Fund Penalty
The Trust Fund may be assessed against any person who:
1. is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and
2. willfully fails to collect or pay them.
A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes. This person may be:
1. an officer or an employee of a corporation,
2. a member or employee of a partnership,
3. a corporate director or shareholder,
4.a member of a board of trustees of a nonprofit organization,
5.another person with authority and control over funds to direct their disbursement
For willfulness to exist, the responsible person:
* must have been, or should have been, aware of the outstanding taxes and
* either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).
Using available funds to pay other creditors when the business is unable to pay the employment taxes is an indication of willfulness.
You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities. Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business. An employee is not a responsible person if the employee’s function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid. Notice 784, Could You Be Personally Liable for Certain Unpaid Federal Taxes?, contains additional information regarding the TFRP.
Figuring the Trust Fund Amount
The amount of the penalty is equal to the unpaid balance of the trust fund tax. The penalty is computed based on:
* The unpaid income taxes withheld, plus
* The employee’s portion of the withheld FICA taxes.
For collected taxes, the penalty is based on the unpaid amount of collected excise taxes. IRS will not collect on any penalties or Interest.
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