Posts Tagged ‘Trust Fund Penalty’

Posted on February 9, 2020 in IRS

The IRS published its annual trove of tax statistics Internal Revenue Service Date book, 2018.  The book is a collection of statistics, and reveals declining enforcement and in-person taxpayer services resulting from a shrinking budget and staff. While the growing use of electronic filing and third-party data reporting can ease compliance, budget and staff cuts […]

To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP. These taxes are called trust fund taxes because you actually hold the employee’s money in trust until you make a federal tax deposit in that […]

Posted on April 2, 2015 in IRS

Trust Fund Recovery Penalty Applied to Former PartnerĀ  (From Accounting Today) A recent Tax Court case found a taxpayer liable for a trust fund recovery penalty over the unpaid employment taxes of a partnership of which he was no longer a partner. The trust fund recovery penalty was instituted to encourage the prompt payment of […]