In some cases, an individual can be held personally responsible by the IRS if a business fails to remit its “trust fund taxes” – the federal, Social Security and Medicare taxes withheld from employees’ paychecks.
Via the Trust Fund Recovery Penalty, the IRS could lien and/or levy this responsible person’s personal assets to collect these payroll taxes.
You do not have to be an owner, officer, or board member of an organization to be considered a responsible person under this penalty! You could be an employee who knew that these taxes were not being collected and didn’t do anything about it.
If you find yourself subject to the IRS Trust Fund Recovery Penalty, contact our office immediately! We may be able to reduce the penalty or eliminate it entirely.