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 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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Corey Davis

17:30 24 Sep 23

I worked with BC tax , not only did they not deliver on helping lower my tax liability owed, after paying the $1250 fee they come and ask for... additional 1250. I stated the experience did not meet expectations and I wasn’t working with them any longer , they call and email asking if we can do a payment plan ( ask if I can’t pay a measly$ 1250) . I can but I won’t waste my money. This firm os just out to take your money but fail to deliver the services promised. You can never call and get an answer, always voicemails till they call you . Don’t waste your time and money.read more

Alesia Dietrich

22:31 07 Jul 23

Dan Roby, a gentleman, a wealth of knowledge, a friend. This man took the time to tell me not once, but twice how to handle my awful issues with the... IRS. Even though they’re not extreme, they are enough to keep me from sleeping at night. Dan explained that I should reach out to my original IRS case worker and explain to them my current position and be super honest. Explain a change of circumstances, explain the fact that I am soon to have to pay back student loans that I’m living paycheck to paycheck, and that I’m even having a hard time putting food on my table. And to ask the IRS person to give me an extended “loa” of all payments.… After being on the phone with the IRS for over two hours, and having multiple screens open, with my bank accounts my net pay, what I owe for different bills, The IRS gave me a conditional extension on what I owe them. What a sigh of relief. I wouldn’t have been able to do this on my own, without Dan’s kind knowledgeable advice, I came out a winner. This man is so awesome and I would recommend him and BCTax to anyone in need of tax advice!read more

Scott Payne

14:10 06 Jul 23

I truly cant say enough good things about my experience with BC Tax. From the initial call they were very clear/concise with what I had ahead of me... and set clear expectations which helped calm my nerves. I really felt like I had a team of people helping me - and they were all on the same page.They cleared up something which had been hanging over my head for several years - IN LESS THAN TWO WEEKS!!!WHEN you choose BC TAX, have your documents (Bank statements, income information, etc...) ready for them or be willing to get them the information they need quickly - this will help them help you!!!.read more

Trust Fund Recovery Assistance