Employers are responsible for withholding income and employment taxes from their employees. These taxes are referred to as trust fund taxes because the employer is only holding the money for the employee to pay the IRS. When an employer fails to withhold the money and pay it to the IRS, individuals who are “responsible” and
trust fund recovery penalty
How the IRS Determines Who Responsible People are (Trust Fund Penalty)
How the IRS determines who responsible people are (Trust fund penalty) Federal taxes may seem burdensome to many employers, but prompt payment of those taxes is often preferable given the penalties associated with a failure to pay. One such penalty is the Trust Fund Recovery Penalty (TFRP), which is assessed against any responsible person who