| You have heard of the Trust Fund Recovery Penalty. | | | | of a partnership. |
| Trust funds that aren't paid are evaluated with | | | | The individual liable for the trust funds must pay the |
| penalties. How are Trust funds defined? Trust fund is | | | | penalty. An IRS officer will identify the person who |
| money withheld from an employee's paycheck. It could | | | | holds the ability to sign company checks and settle the |
| be Medicare, FICA, or federal tax that is held in trust | | | | company's bills, and who does the tax reporting and |
| until a federal tax deposit is made. | | | | most financial decisions. If multiple individuals are jointly |
| So, who's liable for paying these funds? The individual | | | | liable for the trust funds, they each owe the whole |
| who has the ability to account for, collect, and pay | | | | sum of the penalty, not the amount when divided |
| trust funds is the person who is responsible for it. This | | | | equally. |
| may be any person who has the ability and authority | | | | Know your rights if you're somehow involved. Examine |
| to supervise the disbursement of funds - a corporate | | | | if the right amount was assessed. The unpaid balance |
| shareholder or director, a member of the board of | | | | of the trust fund debt and the penalties need to be |
| trustees of a nonprofit organization, an officer or | | | | equal. You might qualify for an installment agreement |
| employee of a corporation, or a member or employee | | | | or Offer in Compromise so check it out. |