Insight Regarding The Trust Fund Recovery Penalty

When employers pay employees, some of the money owed to employees is withheld in trust as withholding taxes and Social Security taxes. When employers fail to turn over payroll taxes to the IRS, they will likely face a trust fund recovery penalty and be required to pay those funds personally.

The Boston and metro west Massachusetts tax law firm of Levins Tax Law, has represented numerous corporate officers, directors, stockholders, management-level employees and even bookkeepers and clerical staff who have check-writing authority in trust fund recovery penalty cases. In addition, tax attorney Gerard J. Levins is a former IRS agent. His experience on both sides of trust fund recovery penalty issues has led to the successful representation of numerous parties facing trust fund recovery penalty issues.

Defenses To The Trust Fund Recovery Penalty

When handling a trust fund recovery penalty, our goal is clear: to have you deemed not responsible for the issue. We use numerous defenses following assertions of unpaid trust fund monies, including:

• Who was in control of the money and how high is the amount? If the amount was negligible and/or you were not in actual control of the funds, the IRS may drop the case or negotiate a settlement.
• What was the degree of “willfulness?” If the IRS believes the trust fund issue was an error, it may choose not to pursue your case.
• Can the IRS reasonably expect to recover the funds from you or your firm? If not, the IRS may choose not to spend time and money pursuing a case that won’t result in recovered funds.

To schedule a no-obligation confidential consultation regarding unpaid employment taxes, call 508-202-9800. We have offices conveniently located in Boston and Framingham, Massachusetts, and we accept Visa, Mastercard and American Express.