Can the payroll clerk be charged for the Trust Fund Penalty?
- David Greene
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Yes, the IRS can pursue a payroll clerk as a “Responsible Party” for the Trust Fund penalty. I am quite sure that the owners and/or managers of the company would also be contacted and found to be responsible. They probably…
Can criminal charges result from the Trust Fund Penalty?
- David Greene
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A business owner who has not paid the payroll taxes of his employees will have the trust fund penalty assessed against him. Most trust fund cases are not criminal because the IRS recognizes that the employer failed to pay the…
Can one who owns a business in name only be responsible for delinquent taxes of the business?
- David Greene
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I had a recent client who set up a business in his son’s name. He is now going to close it. It owes over $50,000 in unpaid payroll taxes and has no assets. He wanted to know if his son…
What is the responsibility of non-owners for the Trust Fund penalty?
- David Greene
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The IRS can pursue any employee of a company if they determine that the person is a “Responsible Party” for the Trust Fund penalty. The trust fund portion of the payroll taxes is all of the federal taxes that are…
How does the IRS determine who owes the Trust Fund Penalty?
- David Greene
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The Trust Fund Penalty (TFP) is not really a penalty but is instead a portion of the payroll taxes a company is required to collect from employees and pay to the IRS. The employer withholds federal, social security and Medicare…
Can one designate voluntary payments from the sale of corporate assets to pay the trust fund portion of delinquent taxes?
- David Greene
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Thank you for your question. The answer is, yes you can designate to which taxes the money you pay to the IRS will be applied as long as it is a “voluntary” payment and not one paid due to forced…
Can criminal charges be brought for not paying payroll taxes?
- David Greene
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A business owner who has not paid the payroll taxes of his employees will usually have the trust fund penalty assessed against him, making him personally liable for the federal taxes withheld. Most trust fund cases are not criminal because…
What exactly is the Trust Fund Penalty?
- David Greene
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First let me clarify that the Trust Fund Penalty is not really a penalty added to tax owed but is a portion of the payroll taxes owed by a corporation. The Trust Fund Penalty only applies to corporations, not to…