What You Must Know About Trust Fund Recovery Penalty

 You have heard of the Trust Fund Recovery Penalty. Trust funds that aren't paid are evaluated with penalties. How are Trust funds defined? Trust fund is money withheld from an employee's paycheck. It could be Medicare, FICA, or federal tax that is held in trust until a federal tax deposit is made.

So, who's liable for paying these funds? The individual who has the ability to account for, collect, and pay trust funds is the person who is responsible for it. This may be any person who has the ability and authority to supervise the disbursement of funds - a corporate shareholder or director, a member of the board of trustees of a nonprofit organization, an officer or employee of a corporation, or a member or employee of a partnership.

The individual liable for the trust funds must pay the penalty. An IRS officer will identify the person who holds the ability to sign company checks and settle the company's bills, and who does the tax reporting and most financial decisions. If multiple individuals are jointly liable for the trust funds, they each owe the whole sum of the penalty, not the amount when divided equally.Recover Money Lost to Binary Options Forex

Know your rights if you're somehow involved. Examine if the right amount was assessed. The unpaid balance of the trust fund debt and the penalties need to be equal. You might qualify for an installment agreement or Offer in Compromise so check it out.

Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at