Protecting Business Owners
The Trust Fund Recovery Penalty (TFRP) is a penalty that can be assessed by the Internal Revenue Service (IRS) against individuals who are responsible for collecting, accounting for, and paying over certain taxes, such as income and employment taxes, but fail to do so. The penalty can be significant, and the IRS has broad powers to enforce it, including the ability to seize assets and pursue legal action against the responsible individuals.
Hiring a tax attorney when the IRS is assessing the TFRP is important for several reasons. First, a tax attorney can help you understand your rights and obligations under the law and the specific facts of your case. They can review the evidence and determine whether the penalty has been correctly assessed, and if so, how much you may owe.
Second, a tax attorney can represent you in dealings with the IRS, including negotiating a payment plan or settlement of the TFRP, or challenging the penalty in court if necessary. They can also help you respond to any other tax issues that may arise, such as audits or other tax disputes.
Third, a tax attorney can provide valuable guidance on how to avoid future tax problems and ensure compliance with tax laws going forward. They can help you establish procedures for ensuring timely payment of taxes, identify areas of risk, and advise you on tax planning strategies that can help minimize your tax liability.
Overall, a tax attorney can provide valuable guidance and representation when the IRS is assessing the TFRP, and can help you avoid or mitigate the significant financial and legal consequences that can arise from noncompliance with tax laws.