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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Tom EarnestTom Earnest
22:16 06 Feb 24
The best choice to solve IRS issues at a reasonable fee We received many solicitations about our tax issue. BC tax, LLC was professional and... diligent in every respect. Our issue was about and unexpected recapture of depreciation on a capital gain sale we made. I was not in a cash position to pay the entire tax when due. IRS imposed a substantial penalty for not paying the tax when due. BC Tax was able to negotiate with IRS to remove the penalty. My personal attempts to deal with IRS were frustrating and with out success. Colleen's help solved our issue quickly and in the manner we had discussed. We are very appreciative of her efforts.read more
Flint DavisFlint Davis
22:59 12 Dec 23
This man is by far the best person that I have had the honor to talk with and do business with he’s laid back and doesn’t hide anything the man is a... serious straight shooter his name is Dan and he definitely the man . He has helped me more than those people who lied to me and took my money ( 6k) and said oh we will do this and didn’t do it , so when you call ask for Dan he will do everything in his power to move heaven and hell to get you taken care of .read more
Lynda OttLynda Ott
05:25 08 Nov 23
Megan Bridge with BC Tax has been working on my issues with the IRS for about 15months. I had created an issue over 3-4 years by overpaying the... estimated Quarterly Taxes and applying the tax refund to the next years taxes. So, all was good as I never owed any additional tax above the paid Estimated Quarterly Taxes – except!, I didn’t follow up with a filed return. In 2021-22 The IRS issued huge penalties with interest for not filing timely returns. In early 2022 I filed the delinquent Tax Returns which I expected to clearup the Penalties & interest issues. However, I was getting nowhere with the IRS regarding the large penalties and interest. I asked BC TAX to help, and Megan Bridge took on my case and resolved the issue. Her ability to understand the terminology, access to the right people and the on-line information resulted in the IRS waiving the penalties and interest. Needless to say I would recommend Megan and BC TAX. Billread more
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