Trust Fund Penalty Assessmentin

Federal employment and payroll tax delinquencies can result in the assessment of substantial penalties and interest along with the seizure of your business and personal assets. Federal payroll tax laws give the IRS greater authority to collect what is owed.

Congress enacted the Trust Fund Recovery Penalty Statute to encourage prompt payment of withheld and other collected payroll taxes by allowing the IRS to assert liability against responsible third parties, and the authority to collect these taxes from the owners and corporate officers. Even if the business is voluntarily or involuntarily closed, the owners/corporate officers are personally liable for these types of taxes — and payroll taxes cannot be discharged in bankruptcy!

When a corporation fails to pay payroll taxes, the IRS or a comparable state tax payroll agency will file documents to assess taxes against the persons in the corporation responsible for the nonpayment of such payroll taxes.

How We Help You

We have successfully represented many businesses, both multimillion-dollar and small family business, that failed to make their employment tax payments. We have successfully eliminated the trust fund penalty for our clients and intervened to keep their businesses open by utilizing several of the available IRS plans.

Consult an experienced tax attorney immediately. Do not ignore the payroll tax problems of your company or the company for whom you are an officer, director or the responsible payroll person. Doing nothing makes the problem grow exponentially.

Time is critical. There are IRS deadlines which must be met — or you could lose important IRS rights, money or property.

If you are being audited by the Internal Revenue Service, Franchise Tax Board or any other state or local tax authority, contact the tax attorneys at David Lee Rice, A Professional Law Corporation, immediately at 310-517-8600 for a consultation.

What Sets Us Apart?

  • Over 3 Decades of Experience
  • Specialist in taxation through the California Board of Legal Specialization
  • Certified as a specialist in elder law through the National Association of Elder Law Attorneys

Contact Us Today

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