Trust Fund Recovery Assistance

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 employment 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 tax professionals 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 start your payroll tax relief.

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See What Others Are Saying About BC Tax


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Branton WalkerBranton Walker
21:40 29 May 24
Nate and Laura were awesome and exceeded our expectations. They handled our situation from the very beginning of the process and the communication... was great so we knew what was going on each step of the way. They relieved us of so much stress and pressure and would recommend them to anyone and couldn't be happier with how it all turned out in the end.read more
James DematteoJames Dematteo
19:06 21 May 24
I spoke to Daniel Roby several times. He was very heloful and answered all my questions. I would use him for all my tax purposes and will be... recommending him to all my family and co workers. PS Great guy to speak to.read more
Ivan LeeIvan Lee
14:45 08 May 24
BC Tax services did a fantastic job handling my issue with the IRS. Rocio and Julie were patient in putting my responses together and kept me... updated throughout the process. Once they took over for me the IRS letters ceased. The fees were reasonable and the process were handled with in the timelines the IRS was expecting a response. I have heard how hard it is to negotiate with the IRS and Rocio and Julie took care of all the negotiations toward a resolution. I am glad to have chosen BC Tax services.read more
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