As a business owner, or other responsible party, you had the duty to submit certain taxes to the government on behalf of your employees. The government considers these taxes to be trust fund taxes, since it’s as if you held the money for social security taxes, income taxes, and Medicare taxes in trust for your employees. The failure to pay these taxes is a serious tax problem that could result in significant penalties.
Will You Have to Pay a Trust Fund Recovery Penalty?
Generally, you will have to pay a trust fund recovery penalty to the IRS if you:
- Were a person responsible for accounting, collecting, or paying the taxes held in trust. The determination of who is responsible for trust fund taxes is a legal matter. More than one person may be considered a responsible person. Some examples of responsible people include, but are not limited to, officers of a corporation, members of a partnership, employees, and payroll service providers.
- Willfully failed to account for, collect, or pay the taxes held in trust. The term willful is used as a legal term in this context. Generally, it means that a person has intentionally, deliberately, voluntarily, or knowingly acted (or failed to act) in a certain way.
An experienced Oklahoma City tax attorney may further define both of these terms for you as you discuss your legal options.
How an Oklahoma Tax Lawyer Can Help You if the IRS Informs You of a Trust Fund Recovery Penalty
An Oklahoma tax attorney will explain your legal options to you and help you fight hard for a fair outcome to your tax problems. For more information, please call our experienced tax lawyers today at 800-721-7054, and please request a FREE copy of our book, The Ultimate Survival Guide for IRS Problems.