When the IRS Contacts you about Employment Taxes and TFRP penalties.
By STEVE PFAFF, IRS Tax Representative for Real Estate Businesses
(LAW OFFICES OF STEPHEN C. PFAFF)
It's very tempting when cash gets tight to dip into the funds you have reserved to pay employment taxes. It sounds easy to just use the money and repay later. However, you face 2 problems. The first is that you'll find it hard to come up with those funds later. The second and most critical is that the IRS strictly enforces the payment of employment taxes.We have all heard about the hiring of many new IRS agents. One area they will concentrate on is making sure business are depositing their employment taxes on a timely basis. The penalties for failure to deposit are very significant. They can also include an additional penalty on the members of your business who are responsible for depositing the taxes. This additional penalty called the Trust Fund Recovery Penalty (TFRP) attaches person...
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