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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.

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