IRS Corporate Trust Fund Penalty Solutions - YouTube

In 2019 the Internal Revenue Service issued 4.9  million separate assessments against corporations  

and corporate officers and  employees totaling over $13  

billion dollars in civil penalties. That's  a tremendous amount of money civil penalty  

basically is that a corporation or an individual  failed to take an action and so that person or  

entity is going to be penalized for it and  so most corporations get into tax trouble  

with employment taxes these are Social Security  Medicare your individual withholdings for your  

employees the corporations matching Social  Security and Medicare that they're required  

to pay these are filed on your employers and  your Employer's Quarterly report that Form 941  

or the Federal Unemployment Return at the end of  the year Form 940. When a corporation does not  

file these returns on time or files them with  a balance or does not file the returns at all  

or just doesn't make any federal tax deposits  according to their schedule most people have to  

pay them a lot of corporations pay them every  month some corporations pay them bi-weekly and  

then corporations with high wages have to pay  them sometimes within 72 hours of a payday so  

those employment taxes when they become delinquent  a Revenue Officer is going to come out and conduct  

what's called a Trust Fund Recovery Penalty and  they're going to find any person in that entity  

President Vice Presidents CFOs regular payroll  accountants anyone that they can find who is  

willfully responsible for not paying the tax and  was responsible for making sure it was done can be  

civilly penalized for that amount of tax so if a  corporation has $700,000 of unpaid Employment Tax  

guess what any person that they find who was who  was responsible for making sure the tax was paid  

and who willfully made a decision not to pay them  they can be personally held liable for that seven  

hundred thousand dollars those are civil penalties  the majority of them that are filed and other other  

more exotic civil penalties that are pushed out  there but the main one we're talking about today  

is for Employment Taxes so when that happens  that Revenue Officer is going to show up at your  

place of business they're going to conduct  the TFRP the Trust Fund Recovery Penalty  

Investigation they are allowed to contact your  customers and issue levies on any accounts 

receivable that you have from your customers  they're allowed to contact them and interview them  

you don't want your customers being contacted by  the IRS saying hey Smith Incorporated owes $700,000  

how much are you sending them this month for  your bill okay you need to now send that to us  

that is an almost automatic no go for a  lot of customers and that's going to go find  

another company the IRS can issue Summonses  they can issue Subpoenas for people to appear  

and give testimony or interview them they can  file an Injunction against your corporation  

to stop doing or to start doing something  they can issue Fraud Referrals and then your  

employment tax issue becomes a Fraudulent issue  which could be subject to increased penalties  

and fines and possibly even incarceration they  can issue levies against your entity your bank  

accounts or corporate officers and they can the  most damaging thing is for the filing of that  

Federal Tax Lien once that Federal Tax Lien is out there it also becomes public record it  

goes into the public record and anyone who just  goes to the courthouse and google's Federal Tax  

Liens is going to see your corporation's name if  you're in the process of trying to secure loans or  

funding for a particular project when they do a  UCC search Uniform Commercial   

Code they're going to see that this company has  a tax lien and it is almost prohibitive at that  

point to get you any type of regular bank  funding and you have to go into other markets  

where the interest rates are significantly more  expensive. So i've been in this business for almost  

20 years I worked with Internal Revenue Service and  then i've been in private practice since 2012.  

I received my 2013. I know everything that  Revenue Officer is going to do when they show  

up at your place of business to investigate your  corporation trust me when i say you need someone  

who knows how they think how they operate and what  procedures they will utilize to come after you  

there is a path forward when you have irs  trouble and you need to get good representation  

even if it isn't me don't let the irs come in and  do harmful things to your business that can force  

it to shut down now they're not allowed to put  you out of business unless you're in a fraudulent  

arena but typically they can do enough things  to you that will ultimately force your business to  

close because you just won't be able to operate.  So I give free consultations here at TaxCorp  

you can come to our website and  sign up for a a consultation  

please click on our links like and follow our  page and share it with other business owners  

you never know who may be having this trouble and  so as always we're here to help have a great day