Who is Liable for the Trust Fund Recovery Penalty?
The IRS will hold any person liable for the trust fund recovery penalty who was responsible for, meaning they had the duty to account for, collect, and pay over the trust fund taxes to the government.
A person includes officers and employees of corporations and partners and employees of partnerships, corporate directors and shareholders, other corporations, sureties and lenders. You don’t necessarily have to have a corporate title to be held liable for the trust fund recovery penalty. The person may be a "peion" or a bottom level employee, however if they are responsible for collecting/withholding the tax money, reporting it and paying it they will be liable for the trust fund recovery penalty.
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