Payroll Tax Resolution
Trust Fund penalties are personal — defend accordingly.
Overview
Unpaid payroll taxes (Form 941 balances) are the IRS's highest-priority collection matter. Under IRC §6672, the IRS can pierce the corporate veil and personally assess the Trust Fund Recovery Penalty (TFRP) against any 'responsible person' who 'willfully failed' to pay. Our attorneys defend responsible-person determinations, negotiate business installment agreements, and coordinate resolution across the entity and its owners.
What's Included
- Form 4180 interview preparation and representation
- Responsible-person and willfulness defense under IRC §6672
- In-Business Trust Fund Express Installment Agreements
- Coordination of business and personal TFRP liabilities
- Federal Tax Deposit compliance planning going forward
Frequently Asked Questions
What is the Trust Fund Recovery Penalty?
The TFRP under IRC §6672 makes the withheld portion of payroll taxes (employee income tax + employee FICA) personally collectible from the individuals responsible for paying them over — typically owners, officers, and check-signing bookkeepers.
Am I a 'responsible person' just because I own the company?
Not automatically. Responsibility depends on actual control — check-signing authority, ability to decide which creditors get paid, hiring/firing authority. Ownership is evidence but not conclusive. We often successfully defend passive owners and outside CFOs.
Can payroll tax debt be settled with an Offer in Compromise?
Yes, but with restrictions. The IRS is generally unwilling to compromise a live business's 941 debt while the business continues to operate. Personal TFRP assessments and closed-business 941 debts are more commonly compromised.
What is Form 4180?
Form 4180 is the interview the IRS uses to determine who is a responsible person for TFRP purposes. It's a critical inflection point in a payroll case — never do it without representation.
See our full Tax Resolution, Tax Prep & Bookkeeping FAQ.
Related Services
Payroll Tax Resolution Across Northeast Florida
We handle payroll tax resolution cases for taxpayers and small business owners throughout the Jacksonville metro. Choose your city for locally-tailored details, ZIP codes served, and city-specific FAQs.
Also serving all of Duval County, St. Johns County, Clay County, and Nassau County. See the full Jacksonville tax attorney overview.
Ready to talk about Payroll Tax Resolution?
Call now for a free case review. We'll pull your transcripts and show you exactly what your options are.