If you've read my prior blogs, you already realize that Payroll Tax Debt is often the most complicated and risky tax debt issue to deal with, and as mentioned in the title, not only is the business liable for the tax, but the owner’s and other “Responsible Persons” can be held responsible for the Trust Fund portion of the debt. This is known as the Trust Fund Recovery Penalty, or the TFRP.
While the IRS can only collect the debt once, they can collect it from any and/or all “Responsible Persons”. Both the business and the “Responsible Persons” can be levied or liens placed against them. If you are a business owner, and the IRS coming after both your business and yourself personally, this can be devastating. For the most, payroll tax debt is fairly simple. You either owe it or you don’t. However, helping taxpayers navigate options to save their business while minimizing personal liability is our goal when these cases come into our Richardson, TX office.
One of our most important duties is helping our clients through the 4180 interview. This is the interview from which the IRS will determine any personal liability as well as any potential criminal conduct. Often, taxpayers who go through this interview, unknowingly say the wrong things and put themselves at risk. We rarely allow the IRS to directly interview our clients minimizing their exposure. In addition, we explore all potential resolution alternatives to find the best outcome for our clients, keeping in mind both the survival of the business and personal liability.
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