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Tax Relief Service

Trust Fund Recovery Penalty
Protect Yourself from Personal Liability

When a corporation fails to pay payroll taxes, the IRS can hold individuals personally responsible. Our expert team helps protect you from personal liability and aggressive IRS action.

Learn About Trust Fund Recovery Penalty

Watch our expert explain how Trust Fund Recovery Penalty works and how it can help you

This video provides an overview of the Trust Fund Recovery Penalty process and what to expect when working with Valor Tax Relief.

What is the Trust Fund Recovery Penalty?

A penalty that allows the IRS to hold individuals personally responsible for unpaid payroll taxes

How It Works

The TFRP is a penalty assessed by the IRS when a business fails to remit withheld payroll taxes (also known as "trust fund taxes"), including:

Federal income tax withheld from employees
Social Security and Medicare taxes (FICA)

Who Can Be Held Liable?

Business owners or shareholders
Corporate officers or directors
Bookkeepers or payroll managers
Anyone with financial authority

Why You Should Act Immediately

Asset Seizure Risk

The IRS can seize personal assets, including homes, wages, and bank accounts

Growing Penalties

Penalties can grow rapidly with interest and compound over time

Legal Complications

Delay can lead to legal complications and enforcement actions

Note: Taking early action gives you more options for resolution and better protection of your personal assets.

How Valor Tax Relief Can Help

Our experts move quickly to protect your rights and finances

1. Evaluate Liability

Assess your level of liability under IRS criteria

2. Collect Documents

Gather documentation to dispute or limit liability

3. Represent You

Handle all IRS communications on your behalf

4. Negotiate

Work out payment plans or settlement alternatives

5. Resolution

Guide you to a resolution that preserves your assets

We communicate directly with the IRS to ensure the best possible outcome for you.

What Our Clients Say

"I didn't even know I could be personally liable for our payroll tax issue. Valor Tax Relief stepped in fast, handled the IRS, and helped me avoid financial disaster."

Michael B.

Nevada

Frequently Asked Questions

What are "trust fund" taxes?

These include federal income tax withheld from employees and the employee portion of Social Security and Medicare taxes.

How does the IRS decide who is liable?

The IRS looks at who had authority over payroll and tax payments and whether the failure to pay was intentional or willful.

Can multiple people be held liable?

Yes. More than one individual can be held jointly and severally liable for the full penalty amount.

Can I challenge a Trust Fund Recovery Penalty?

Yes. With proper documentation and representation, you can challenge the penalty or request an appeal.

How long does the IRS have to assess the penalty?

The IRS generally has three years from the date the tax is assessed to impose the TFRP.

Who can be held personally liable for TFRP?

Business owners, shareholders, corporate officers, directors, bookkeepers, payroll managers, and anyone with authority over financial decisions or payroll functions.

What happens if I don't act immediately?

The IRS can seize personal assets including homes, wages, and bank accounts. Penalties can grow rapidly with interest, and delay can lead to legal complications.

How can Valor Tax Relief help with TFRP?

We evaluate your liability, collect documentation to dispute or limit liability, represent you in IRS communications, negotiate payment plans, and guide you to resolution.

What is the Trust Fund Recovery Penalty?

The TFRP is a penalty assessed by the IRS when a business fails to remit withheld payroll taxes, allowing the IRS to hold individuals personally responsible for unpaid payroll taxes.

How do I get started with TFRP defense?

Call us at 877-814-2398 for a free consultation. We'll evaluate your liability, explain the process, and help you determine the best defense strategy.

Ready to Protect Yourself from Personal Liability?

Our team of experienced tax professionals is here to help. Contact us today for a free consultation about your Trust Fund Recovery Penalty case.

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