Avoid Trust Fund Recovery Penalties | We Can Help

When it comes time to pay your employees, your company will most likely withhold Medicare, Social Security and income tax contributions from their paychecks. The money you withhold is commonly referred to as trust fund taxes because your company will place these funds into a trust until you make a federal tax deposit.

What Is a Trust Fund Recovery Penalty?

If your company withholds income tax, social security and Medicare payments from your employee’s paychecks but does not send this money to the IRS, your business will receive a trust fund recovery penalty. A payroll tax penalty is one of the most significant penalties a company can receive, and the IRS can take your personal assets to regain the amount of money you did not send.

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Who Can Receive a Trust Fund Recovery Penalty?

Anyone who knowingly fails to collect and pay trust fund taxes for a company, such as a CEO, employee or third-party administrator, can receive a trust fund recovery penalty. Before a member of a business or nonprofit receives a penalty, the IRS must prove the individual knew the taxes were due and purposefully did not pay them. For example, if you or someone in your organization took the money intended for payroll contributions and used it for a different payment, it is a clear sign of purposefully ignoring the law.

BC Tax’s Trust Fund Recovery Penalty Abatement Process

At BC Tax, our mission is to help large and small business owners understand and correctly complete the payroll tax process. Our team can examine your past tax returns to ensure you are filing your taxes correctly. If we find that your company has been filing incorrectly, we can make suggestions to minimize your expenses and the risk of an audit in the future.

BC Tax can also provide assistance if the IRS decides to assess your trust fund recovery penalty. We offer complimentary consultations to thoroughly explain our service offerings. After this consultation, our Enrolled Agents will collect and examine your records and returns to mount a thorough yet fair defense. Our team can also help you complete Form 4180 and provide professional representation at the 4180 interview to improve your chances of resolving this issue.

As part of our service offerings, our team can recommend strategies and procedures such as setting up systems to help your payroll staff correctly calculate, withhold and send money on time to prevent issues such as a payroll tax levy. Our team can also help your business settle for an amount equal to the trust fund recovery penalty, as well as provide additional business tax services.

Trust BC Tax for Payroll Tax Help in Colorado and Across the Nation

At BC Tax, our tax resolution experts are up to date about current tax laws and are proud to serve clients at our Colorado location and across the United States. In addition to making sure your company completes and files its income taxes correctly, we offer various tax services such as assisting with business tax, resolving back taxes and sales tax debt relief. Give our team a call at 800-548-4639 or contact us online today to set up your payroll evaluation.

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Danette Beren

19:19 19 Sep 22

I can't say enough about BC Tax. They did exactly what they said they would do. Jazmine has been very helpful in explaining things to me. I wish... there could have been a better out coming but she assures me it will be over with soon. I would recommend them to anyone. Thank you for a professional job well done.read more

Philippe Tourbier

20:09 09 Sep 22

I'd been struggling through a divorce when I ran into IRS problems. It was so confusing, and I was so angry. Then I talked to BC Tax on the phone,... and they were so knowledgeable and patient. I was relieved and grateful when she got it all sorted out with minimal effort on my part.read more

John McGovern

18:24 31 Aug 22

Jenny Brodt and Anne Martin of BC Tax are the BEST advocates for tax relief anyone could possibly have! Their work was beyond stellar, thorough,... patience, and emminently competent. I couldn't refer a Tax relief company any more than i could BC Tax. They are simply the BEST!!! lread more

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Trust Fund Recovery Assistance