There are many reasons businesses fall behind on paying their federal tax liabilities. Falling behind on certain kinds of taxes, sometimes called “trust fund” taxes, may result in the IRS assessing those taxes against the business owners, officers, or other individuals the IRS considers to be “responsible” for ensuring the payment of those taxes. Federal [...]
For many business taxpayers who have Small Business Administration (SBA) financing that ultimately goes into default, it can be difficult to work with an SBA receiver and operate a business. While understanding that relationship requires an expertise that is outside the scope of this article, a recent Eleventh Circuit Court case confirmed that employment taxes [...]
The recent Sixth Circuit decision in Bibler v. U.S., 2018 WL 1911249, may mark an evolution of the definition of “willfulness” in trust fund recovery penalty cases. For the Internal Revenue Service (IRS) to prevail in its assessment of the trust fund recovery penalty pursuant to Internal Revenue Code (I.R.C.) § 6672, the liable taxpayer [...]
An individual assessed the Trust Fund Recovery Penalty (TFRP) has the option to pay just a portion of the assessment to gain access to a court. This is different from the requirement for income taxes, which calls for payment, in full, of the tax, penalty, and interest, before a court can hear the case. The [...]