Categories
IRS Penalties Tax Procedure Trust Fund Penalties

Failing Business Triggers Trust Fund Penalties

Taxes are often neglected when a business is having financial difficulties. This can have serious repercussions for the business and the individuals who are responsible for having taxes withheld and remitted to the IRS. The IRS has the ability to assess trust fund recovery penalties against these individuals, which essentially makes the business tax liability […]

Categories
IRS Penalties Tax Procedure Trust Fund Penalties

You Cannot Dodge Notice for the Trust Fund Recovery Penalty

It is almost always advisable to keep on the lookout for and open correspondence from the IRS. The Haben v. Commissioner, T.C. Summary Opinion 2015-55, case provides an example. In Haben, the U.S. Tax Court concluded that a taxpayer could not contest a trust fund recovery penalty during a collection due process hearing because he […]

Categories
Tax Procedure Trust Fund Penalties

Strategy for Paying Late Employment Taxes

How does the IRS apply partial payments when a trust fund penalty has been assessed?  Can the IRS apply payments to the trust fund portion of the employment taxes or must it apply the payment to the non-trust fund penalty portions? Trust Fund & Non-Trust Fund Tax Employers are generally required to withhold employment taxes […]

Categories
IRS Penalties Tax Procedure Trust Fund Penalties

Better than a Soap Opera? Trust Fund Tax Disputes

Businesses often succumb to the temptation to use taxes withheld from employees wages to manage cash flow problems. These “government loans” can prove to be quite costly. Hart v. Commissioner, 19120-12 provides an example. Facts & Procedural History The taxpayer worked for a real estate firm. The firm did not pay its payroll taxes. The […]