Payroll or Trust Fund Tax . . . IRS has No Sense of Humor
It’s easy to get yourself in hot water when it comes to payment of trust fund taxes to the Federal government. Business cycles, cash flow problems, and unexpected events can cause a business to use trust fund taxes to pay other expenses. It’s understandable, unless you are the IRS. Unless you are protected by able counsel they can, and usually will, unleash an aggression and fury upon the “responsible person” who fails to turn over trust fund taxes to the Federal government.
In fact, section 6672 of the Internal Revenue Code authorizes a 100% penalty to be levied against the responsible person. Section 6672(a) states: “Any person required to collect, truthfully account for, and pay over any tax imposed by this title who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.”
Needless to say, the penalty is brutally harsh. It’s absolutely foolish for you to fool around with this loaded gun penalty provision. Therefore, if you believe you could be subject to a Trust Fund Recovery Penalty (TFRP) then call O.W.D Law immediately. Don’t wait until it’s too late. We can give you a free consultation and explain to you, in plain talk, how you can solve this problem and avoid incurring the wrath of the IRS.
O.W.D Law can settle with the IRS even when it comes to Trust Fund Recovery Penalties (TFRP). If we can, we will eliminate the TFRB liability so you pay ZERO. To eliminate your liability entirely we must refute the two pronged test which the IRS uses to determine the assertion of a TFRP. To trigger TFRP two facts must be established by the IRS: [1] it must be determined you are “responsible” for the payment of the trust fund tax and [2] it must be determined that you “willfully” failed to collect, account, or pay over the trust fund taxes.
If it is determined you owe penalties then O.W.D Law can negotiate a settlement. Often we can settle for dime on the dollar or even pennies on the dollar whether you owe $5000 or one million dollars. Again, knowledge is critical to the success or failure of the offer submitted. We stand ready to use our knowledge to help you!