Archive for Keith Jones, CPA TheCPATaxProblemSolver

Trust Fund Recovery Penalty Or TFRP

Trust Fund Recovery Penalty

TFRP or Trust Fund Recovery Penalty

What does TFRP mean? Trust Fund Recovery Penalty also known as TFRP, basically means you can be held personally liable for a penalty for not properly managing the employment taxes of a business. This is known as the “trust fund recovery penalty” (TFRP).

The TFRP is not a penalty in the traditional sense of being an amount added to a deficiency in tax due by an individual, corporation, or another taxpayer. Rather, the TFRP is a collection device that permits the IRS to impose liability on a “responsible person” who “willfully” failed to remit the employment taxes that were held in trust for the government.

TFRP cases rely heavily upon the fact pattern, and your success in defeating the penalty depends on the presentation of the evidence and knowledge of the IRS’s TFRP procedures.

The Two Prongs of the Trust Fund Recovery Penalty

There are two statutory components that must be established under IRC section 6672(a) before a person can be held liable for the TFRP.

First, the individual must be a “responsible person” for withholding and paying employment taxes to the IRS. Second, the person must have “willfully” failed to collect and remit the employment taxes due.

For purposes of IRC section 6672(a), the liability of a responsible person who has acted willfully is equal to the federal income taxes withheld from the employees’ wages and the employees’ share of the Social Security and Medicare (i.e., FICA) taxes.

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IRS Collection Statute Expiration Date

IRS Collection Statute Expiration Date

The Collection Statute Expiration Date (CSED) marks the end of the collection period, the time period established by law for the IRS to collect taxes. The CSED is normally ten years from the date of the assessment.

The Collection Statute Expires After 10 Years.

The collection period, which refers to the time period allowed by law for the IRS to collect taxes, expires on the Collection Statute Expiration Date (CSED). The CSED is typically ten years from the date of the assessment..

Tax assessments that have a specific Collection Statute Expiration Date include, but are not restricted to:

  • Original tax assessments from voluntarily filed returns
  • Tax assessments arising from amended return filings
  • Substitute for Return tax assessments made by the IRS
  • Audit assessments
  • Civil penalty assessments

The IRS’s Time to Collect Can Be Suspended and/or Extended.

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7 Tax Relief Secrets The IRS Hopes You Never See

7 Tax Audit Secrets

If you or someone you know (i.e., family, friends, partners, employees, subcontractors) is facing IRS difficulties, you can find out how to get back on track with these 7 insider secrets. Learn new strategies on resolving tax debt and delinquent tax returns so that you can avoid severe IRS penalties and financially devastating levies on your wages and bank accounts and ultimately get a fresh start.

With years of record deficits, the government is more motivated than ever to get every dollar of back taxes, penalties, and interest from delinquent Taxpayers. If you find yourself owing back taxes and IRS penalties, here are the seven tax relief secrets the IRS hopes you never see.

Tax Relief Secret #1
IRS Penalties Can Be Removed

The IRS has over 148 different types of penalties they can charge against you. The worst part is that the IRS can also charge interest and additional penalties on top of the original penalty.
Penalties can be such a high percentage of the total amount owed to the IRS, it usually makes sense to consider requesting the IRS reduce all penalties to ZERO before you pay the IRS. But If
you’ve already paid the bill, it can’t hurt to ask for a penalty abatement and refund.
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Know The IRS Collection Statue Expiration Date

Keith Jones:The IRS Collection Statue Expiration Date

IRS Collection Statue Expiration Date (CSED)
“It is a basic concept of law that once a statute of limitation has passed, no action barred by the statute may take place.”

–Procedurally Taxing

The IRS collections statute expiration date (CSED) is the date after which the IRS can no longer collect a tax debt.

When things are simple, the CSED is easily calculated as 10 years from the date of assessment.

This means that no matter how little the IRS has been able to collect on a tax debt assessed in April of 2007, they must cease collection on that debt in April of 2017.

However, when you’re working with the IRS, things are rarely as simple as you’d like. There are a handful of events that can result in extending the CSED date (sometimes called “tolling events”).
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Can Filing Bankruptcy Wipe Out Your IRS Tax Debt?

Life happens! Divorce. Job loss. Serious illness. These are life events that can cause financial hardship and force good honest folks to file for bankruptcy. Those who have struggled with an endless stream of expenses that never end often owe income taxes that just will not let them be.

Taxes are a part of life. This is true after bankruptcy. Before filing your income tax returns when there has been a bankruptcy, it’s important to know things. Many people have either partial or incorrect information whether and how bankruptcy could help.

The following information may help you get a few things straight and find the best choice for you:

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Control Spending This Holiday Season, Avoid Financial Problems in 2018

Keith Jones, Tax Advisor

I know ladies who shop all night long and are so excited about the big sales that go on throughout the Thanksgiving holiday weekend.

They plan to hit stores for time-specific sales and map out routes to cut down on time wasted in traffic or looking for parking spots. To make the most of the big day, hardcore shoppers sort through advertisements and go online to compare prices Others get caught up in the moment and join the spending frenzy with no plans or shopping lists. Read More

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