Tax Highlighter
The Trust Fund Recovery Penalty (TFRP)
May 17, 2022
Businesses that withhold taxes from employees and others but don’t pay them over to the IRS may face a penalty equal to 100% of the unpaid tax. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against “responsible” parties, even non-owners. When the treasurer of an airline-related business was hit with the TFRP on the company’s unpaid taxes, he asked the U.S. Court of Federal Claims to intervene. He stated he was a “cash manager,” without authority to decide which bills to pay, including tax payments. After finding he “had authority to make payments up to $10,000,” to recommend payments, write checks and pay taxes, the court allowed the case to proceed. (Rosenheim, 5/3/22)
Posted May 17, 2022
Meet the Expert
Reach out to our team
Let's discuss
Interested in discussing this topic further? Fill out this form to get in touch with our advisors and get the conversation started. Together, we can help light the path forward to a brighter future.
"*" indicates required fields