Trust Fund Recovery
The IRS Trust Fund Recovery is a process used by the IRS to collect unpaid employment taxes from individuals who are responsible for paying those taxes on behalf of their business. The taxes in question are known as "trust fund taxes," as they are held in trust by the responsible individual until they can be paid to the government. The IRS has the authority to pursue Trust Fund Recovery under Internal Revenue Code section 6672, which allows the agency to hold certain individuals personally liable for the unpaid trust fund taxes of their business.
Trust Fund Recovery: Understanding Your Tax Obligations and Legal Solutions
As a business owner or individual, you have a responsibility to pay your taxes on time and in full. This includes not only income taxes but also payroll taxes, which are often referred to as trust fund taxes. These taxes are withheld from employees' wages and held in trust by the employer until they are paid to the government. Failure to pay these taxes can result in serious consequences, including penalties, interest, and even criminal charges. If you are facing trust fund recovery issues, it is important to understand your legal obligations and the solutions available to you.
What is Trust Fund Recovery?
Trust fund recovery refers to the process by which the Internal Revenue Service (IRS) collects unpaid payroll taxes from a business or individual. These taxes are considered trust fund taxes because they are held in trust by the employer until they are paid to the government. Trust fund taxes include Social Security and Medicare taxes, as well as federal income tax withholding.
If a business or individual fails to pay their trust fund taxes, the IRS can assess penalties and interest, as well as pursue legal action to collect the unpaid taxes. In some cases, the IRS may even seek criminal charges against those who willfully fail to pay their trust fund taxes.
Legal Solutions for Trust Fund Recovery Issues
If you are facing trust fund recovery issues, there are legal solutions available to help you resolve the situation. Here are some of the most common solutions:
- Negotiate a Payment Plan: One of the most effective ways to resolve trust fund recovery issues is to negotiate a payment plan with the IRS. This allows you to pay off your unpaid taxes over time, rather than in one lump sum. An experienced tax attorney can help you negotiate a payment plan that works for your financial situation.
- Submit an Offer in Compromise: An offer in compromise is a settlement agreement with the IRS that allows you to pay less than the full amount of your unpaid taxes. This option is only available to those who can demonstrate that they are unable to pay their full tax debt. An experienced tax attorney can help you determine if an offer in compromise is a viable solution for your trust fund recovery issues.
- Contest the Trust Fund Recovery Penalty: In some cases, the IRS may assess a trust fund recovery penalty against a business or individual. If you believe that this penalty is unjustified, you can contest it with the help of a tax attorney. This may involve gathering evidence to demonstrate that you were not responsible for the failure to pay the taxes or that the penalty is excessive.
How Carr Law Firm Can Help
At Carr Law Firm, we understand the stress and anxiety that can come with trust fund recovery issues. Our founding attorney, Nathan E. Carr, has over 25 years of legal experience and a Master Degree in Taxation. He has helped countless clients resolve their tax issues and achieve peace of mind.
If you are facing trust fund recovery issues, we can help. Our team of experienced tax attorneys can assess your situation, determine the best legal solutions, and negotiate with the IRS on your behalf. We will work tirelessly to ensure that your rights are protected and that you achieve the best possible outcome.
Contact us today to schedule a consultation and learn more about how we can help you with your trust fund recovery issues.
Arizona Tax Law Representation
Take Action Now If you are facing trust fund recovery issues, it is important to take action as soon as possible. The longer you wait, the more penalties and interest you may incur. Contact Carr Law Firm today to schedule a consultation and start working towards a resolution. Our team of experienced tax attorneys will guide you through the process and help you achieve the best possible outcome for your trust fund recovery issues. Don't wait, take action now and get the help you need to resolve your tax issues.