TaxSOS.com Tax Problems Blog

September 3, 2017

THE IRS TRUST FUND RECOVERY PENALTY – AN OVERVIEW OF IRS INTERVIEW FORM 4180 AND THE INVESTIGATIVE PROCESS IN DETERMINING YOUR PERSONAL LIABILITY.

Filed under: Trust Fund Recovery Penalty — Administrator @ 2:35 pm

THE IRS TRUST FUND RECOVERY PENALTY – AN OVERVIEW OF IRS INTERVIEW FORM 4180 AND THE INVESTIGATIVE PROCESS IN DETERMINING YOUR PERSONAL LIABILITY.

The following summarizes guidelines which Revenue Officers and Managers are to follow in targeting potentially responsible persons. (The source is the Internal Revenue Manual ). Both Civil and Criminal liability exposure exists. …

THE TRUST FUND RECOVERY PENALTY – AN ALTERNATIVE COLLECTION TOOL:

The Trust Fund Recovery Penalty is based upon IRC section 6672 and serves as an alternative means for the IRS to collect unpaid trust fund taxes when the taxes are not fully collectible from the business that failed to pay the withheld taxes. (IRM 5.7.4.1.1).

The IRS uses form 4180 (a copy is here ) as part of the procedures for investigation, recommendation and approval of the Trust Fund Recovery Penalty against individuals who are potentially responsible for the non-payment of the business trust fund taxes.

IRS INITIAL CONTACT WITH POTENTIALLY RESPONSIBLE PERSONS:

During the initial contact with the taxpayer, the revenue office will attempt to conduct interviews with potentially responsible persons. Read More Here

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