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Trust Fund Recovery Penalty

Cape Cod, Massachusetts, Tax Lawyer
Delinquent Payroll Taxes

Do you own a company or make the financial decisions for a company regarding employee tax withholding? Have you had to hold off on paying withholding and social security taxes to pay other business expenses? At the Massachusetts law office of Ronald F. Hood, Attorney at Law, I represent businesses and individuals who have been contacted by the IRS regarding nonpayment of payroll taxes and who face Trust Fund Tax Recovery penalties.

Businesses and employers are required to collect and pay over to the IRS their employees' withholding taxes and the employees' one half of Social Security (the so-called Trust Fund portion). In other words, all the amounts shown on employee pay stubs as subtractions from gross pay regarding federal income taxes and social security taxes must be collected by the employer and remitted to the government.

IRS Trust Fund Recovery Penalty and Personal Liability

The Trust Fund Recovery Penalty (a 100% penalty) is authorized under section 6672 of the Internal Revenue Code. If a person who is responsible to collect and pay withholding taxes willfully fails to collect or pay such taxes, he or she can be held personally liable for the amount of taxes not collected or paid.

As a business owner or financial officer, it is your personal responsibility to ensure that employment withholding is paid every quarter to the IRS. If a business is having financial difficulties, IRS withholding is often given secondary consideration after paying wages, suppliers, rents, and other necessary business expenses.

Unfortunately, the IRS views financial officers as responsible persons under the Internal Revenue Code and will hold a financial officer or business owner personally liable for any withholding tax penalty (Trust Fund Recovery Penalty) incurred by the business entity.

Do not Wait to Contact an Experienced Tax Lawyer

At the law office of Ronald F. Hood, Attorney at Law, I understand how difficult it is to deal with the Internal Revenue Service. As a former IRS tax attorney, I have extensive experience in all aspects of tax law including collections, civil and criminal tax investigations, and offers in compromise.

If you have been contacted by the IRS regarding trust fund tax liability, don't wait to contact my law office. Over the years, I have had success helping clients reduce their personal tax liability through negotiations with the IRS. From making offers in compromise to setting up installment payment plans, I work diligently to protect your individual and business interests.

Contact a Cape Cod Trust Fund Tax Attorney

If you are seeking an experienced tax lawyer to help you reduce your tax liability, contact my law office for a free initial consultation. I can be reached by telephone, fax, or by filling out the client intake form provided on this Web site.

Ronald F. Hood
Attorney at Law
15 Joshua Lane
Suite 101
East Falmouth, MA 02536
Phone 508.388.7735
Fax 508.548.2302
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Mailing Address

Ronald F. Hood
Attorney at Law
P.O. Box 546
Mashpee, MA 02649


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