Can Form 843 Liability 2024-2025

So, if we talk about strategy, what do we do if we're faced with it? What can we do for the client? First of all, on collectability, it could be a defense if the client is unable to pay due to a financial hardship. The IRS can choose not to apply the trust fund recovery penalty if the individual being investigated doesn't have the ability to pay. However, in cases where a business is a repeat offender or they continue to pyramid the tax, collectability may not be a valid defense. During the investigation process, the IRS will subpoena the bank for records and check signature cards to determine check signers who are in control of company finances. However, sometimes a check signer, like an accounting clerk, doesn't have control of the finances. In such cases, the check signing authority can be considered a false positive, as it is delegated and lacks decision-making ability. You can also request an 1153 letter, which is a proposed assessment of the trust fund recovery penalty, if your revenue officer believes your client had responsibility and was willful. It's important to note that 1153 is only a proposal and not a final determination. If you disagree, you have the right to file an administrative appeal within 60 days. While the appeal is pending, it might be a good idea to designate extra payments towards the trust fund liability portion of the tax to reduce the liability amount and mitigate the risk for the client. Additionally, if a business goes under, there may be less ability to collect employment tax from them. However, it's important to remember that this is not an excuse to commit fraud or start a new business to avoid taxes. It's crucial to assess the sustainability of the business and help the client make an...