The IRS Trust Fund Penalty
Payroll taxes are withheld by a business from their employees’ paychecks and kept aside until they are ready to be paid to the IRS, usually on a quarterly basis. These withheld monies are known as a trust fund, and an IRS trust fund penalty occurs when a business fails to pay these required taxes on its employees payroll.
Any company that has to deal with payroll doubtless knows the importance of withholding and turning over these payroll taxes. However, did you know that legislation passed by Congress allows the IRS to impose a trust fund penalty not only on a company but also on responsible third parties – including a company’s higher officers and owners – if they fail to promptly pay these taxes? In fact, they can even go so far as to shut down your business and sell off its assets to collect the money in a worst-case scenario. This legislation is known as the Trust Fund Recovery Penalty Statute (IRC 6672), and it allows for financial punishment that can include accrued interest and other substantial monetary penalties in addition to payment of the amount owed.
Whether you’re looking to proactively avoid an IRS trust fund penalty or are already in the sights of the IRS for a tax issue, the law office of Steven N. Klitzner wants to help. We have years of experience assisting companies with their payroll taxes and understand the law inside and out. We can help you not only determine whether or not you’re responsible for any payroll tax problem, but also to work with the IRS if any issues arise.
Don’t try to deal with the IRS alone; get the experts on your side, and let us help you navigate through any payroll tax issues. Contact the law office of Steven N. Klitzner today for more information.