Music, the revenue officer, will take a look at a number of different factors when they first get the case to determine who they will assess the trust fund recovery penalty against. The number one factor is whether you are a signatory on the bank account. If you are, they will likely assess the trust fund recovery penalty against you, alleging that you had the authority to use the funds to pay the payroll taxes but instead used them for other purposes. Other factors that will be considered are whether you are an officer, director, shareholder, or otherwise involved in the corporation to the extent that you make the decision on which creditors get paid. This can be determined by being a signatory on the bank account or by being part of a group that decides who gets paid when the company is short of funds. The IRS will examine general ledgers or cash disbursements journals with tick marks to determine who will be assessed the trust fund recovery penalty when there is a limited amount of funds. Additionally, the IRS will look at any officers, directors, shareholders, or primary individuals in the corporation. They will assess the trust fund recovery penalty based on all the facts and circumstances surrounding their involvement. If you are a primary individual in a company that has not paid its payroll taxes, please contact our law firm. We will gather the necessary facts and evidence early on to show the revenue officer that you are not a responsible party who willfully failed to pay the payroll taxes.
Award-winning PDF software
Video instructions and help with filling out and completing Are Form 843 Assessment
