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Trust Fund Recovery Penalty (TFRP): What It Is, Who It Targets, and How to Respond
When a business fails to remit employment taxes, the IRS doesn't stop at the company. The Trust Fund Recovery Penalty allows the government to assess 100% of unpaid withholding taxes against individual officers, managers, and anyone with authority over the company's finances. The standard for proving liability is lower than most people expect, and the penalty survives bankruptcy.
Personal Liability for Unpaid Corporate Taxes: Can the IRS Come After You?
Closing a business doesn't make its tax debt disappear. When a corporation fails to pay withholding or payroll taxes, the IRS can pursue the individuals responsible for those payments, including officers, directors, and anyone with authority over the company's finances. Understanding how personal liability works is the first step toward protecting yourself.