Facing Trust Fund Recovery Penalty? Protect Your Personal Assets
The IRS is making you personally liable for business payroll taxes. We mount a strategic defense.
Critical Deadline
60 days from Letter 1153 to appeal the assessment
Note: Strategy Sessions require a $250 analysis fee, applied 100% toward your final service.
Understanding TFRP Penalty
The Trust Fund Recovery Penalty (TFRP) is the IRS's mechanism to collect unpaid payroll taxes from individuals personally responsible for the business's payroll. If assessed, you become personally liable for 100% of the unpaid employee withholdings—a debt that survives bankruptcy and can be collected from your personal bank accounts, wages, and property. The IRS can assess TFRP against multiple individuals, collecting from anyone they can reach.
IRS Authority: IRC § 6672
What Happens If You Don't Act
How The Tax Pro Advisor Resolves This
Helping Austin and Leander business owners resolve tfrp penalty issues with proven strategies and direct IRS representation.
IRS Forms & Documents We Prepare
Frequently Asked Questions
What is the Trust Fund Recovery Penalty?
The TFRP is a penalty equal to 100% of unpaid trust fund taxes (employee withholding) assessed personally against individuals responsible for collecting and paying over those taxes. It makes business payroll tax debt your personal debt.
How long do I have to respond to TFRP assessment?
You have 60 days from the date of Letter 1153 (Proposed Trust Fund Recovery Penalty) to appeal. After assessment, you have 30 days to request a Collection Due Process hearing.
Can I settle this for less than I owe?
TFRP can be reduced through successful challenge of responsibility or willfulness. The assessed amount may also be resolved through an Offer in Compromise based on ability to pay.
Related IRS Issues
Don't Wait Until It's Too Late
The longer you wait, the fewer options you have. Get a free, confidential consultation to understand your situation and next steps.
Note: Strategy Sessions require a $250 analysis fee, applied 100% toward your final service.