Avoiding Trust Fund Recovery Penalties

Serving Residents Throughout Palm Beach County

Income and employment taxes are intended to be faithfully set aside and promptly paid on time. These taxes are held in trust by an employer until such time as they are paid to the government. If an individual fails to pay the full amount of taxes when they are due, they can be personally liable for the unpaid balance of the trust fund tax. This is known as a Trust Fund Recovery Penalty or TFRP. The purpose of this penalty is to encourage payment of the proper amount of taxes on time.

To Whom the Penalty is Applied

According to the IRS, a TFRP can be assessed against any person, "responsible for collecting or paying" the taxes and who, "willfully fails to collect or pay them." This could be the principle owners or officers of a corporation down to anyone involved in the accounting portions of the business. At times, the IRS will attempt to enforce the TFRP on individuals that should not be named.

Sometimes, there are legitimate reasons why certain financial decisions were made at a company. In some cases, the penalty assessed by the IRS is incorrect and can be challenged. If you are facing a TFRP, it is vital that you receive diligent and resourceful legal assistance from a Palm Beach County tax lawyer.

The Effects of a TFRP

Receiving a TFRP can quickly create a tough situation in your life. The penalty can be very high, making it difficult to pay all at once and causing a string of financial problems.

This type of debt:

  • Cannot be relieved through bankruptcy
  • Can adversely affect your credit standing
  • May threaten your personal property

Hiring Much Needed Protection

At The Law Office of Michael K. Miller, P.A., high-quality legal services are provided for those who need effective resolutions to a TRFP that has already been assessed or one that is looming. Mr. Miller takes aggressive action to formulate the best possible solution to your difficulty and works to get this quickly implemented. As a former IRS agent with over 2 decades of experience in tax law, he knows that there are many proven ways to reach a workable agreement for a TRFP assessment.

Quickly contact a Palm Beach County tax attorney if you have been assessed with a TFRP or one has been threatened.

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