CAN THE IRS HOLD ME PERSONALLY RESPONSIBLE FOR UNPAID PAYROLL TAXES?
Yes. Failing to properly file and pay payroll taxes is a serious matter. If an employer fails to timely file and pay payroll taxes, the IRS is authorized to collect these taxes from the business or even a person who was responsible for withholding and paying these payroll taxes to the IRS. In situations where a corporation incurs a payroll tax liability, and the IRS is unable to collect the taxes from the entity itself, the IRS may seek to collect the payroll taxes from individuals within the corporation. To accomplish this objective the IRS will interview different individuals of the corporation to identify who should be assessed the Trust Fund Recovery Penalty (TFRP). An individual is not responsible for a corporate payroll tax liability unless the IRS assesses a TFRP. The TFRP is the amount equal to the tax that an employer withheld or should have withheld from employees’ wages and failed to pay over to the IRS. It is important to note that payroll taxes and this penalty cannot be d
