Trust Fund Recovery Penalties
This is done by assessing the “trust fund recovery penalty” against a “responsible party”. Trust fund taxes are the income and social security taxes an employer withholds from the wages of employees. Although corporate officers, directors, stockholders and employees are normally protected from personal liability for the debts of their corporations, the IRS can assess personal liability against the so-called “responsible persons”.
Getting an experienced IRS tax attorney on your side is extremely important. Often the IRS asserts the penalty against not only the owners of the business, but its accountants, bookkeepers, clerical staff, and anyone who signed checks or had the authority to sign checks. As former IRS attorneys, we know how the IRS investigates this type of cases and what arguments they rely on in assessing trust fund recovery penalties. If you are threatened by the IRS with a trust fund recovery penalty, of if the trust fund recovery penalty was assessed against you, call our tax lawyers to evaluate your case.
Holtz, Slavett & Drabkin, APLC
Former IRS Tax Attorneys
(310) 550-6200
10940 Wilshire Boulevard
Suite 2000
Los Angeles, CA 90024