Once your company has been identified for outright failure to remit payroll tax, the case will be referred to the IRS office for penalty charges and assigned a Revenue Officer whose duty is to help identify the responsible person.

During this period, several events occur before you exercise your IRS Appeal rights. Below are some of the events expected to occur during the trust fund recovery process:

1.     The commencement of the Trust Fund Recovery Penalty Process

A Federal Tax Deposit (FTD) warning and notice are sent to the business.

2.     A Revenue Officer is being assigned to the case

This process is often started when the business fails to respond to the alert and notice sent by the Federal Tax Deposit. The revenue officer is assigned to commence a full investigation. As a way of encouraging compliance from your company, the revenue officer (RO) may send a Form 930, which is a form that instructs the employer to set up a special trust account for employee tax deposits.

3.     Revenue Officer’s Investigation

If the aforementioned step doesn’t yield any positive response, it will spur the revenue officer into action to investigate and determine the responsible individuals. As this process goes underway, the responsible parties will be given a Letter 3586 that notifies them of a meeting in the form of an interview.

4.     The Interview & Form 4180

The Form 4180 is used to document responses received during the trust fund recovery penalty interview. It’s a report of the interview held with an individual concerning trust fund recovery penalty. This is a vital form which you need to pay keen attention when  filling for IRS resolution, as it could determine your fate in the Trust Fund Recovery Penalty case.

You are however not under any obligation to sign the form during the interview.

5.     Post-Investigation and Proposed Assessment

After the investigation has been completed, Letter 1153 (proposed assessment letter) will be sent to state the assessments of a penalty. Upon receiving this letter, you have the absolute right to appeal.

IRS Appeals Rights

The IRS gives you the right to appeal against the trust fund recovery penalty. There are three specific rights you have in regards to this appeal.

1. You have the right to appeal provided you do so within 60 days of receiving the proposed assessment letter, Letter 1153.
2. You have the right to be represented by your attorney who would guide you through the appeal process.
3. You have the right to approach the court for further review of the proposed assessment letter with or without a special bond in case you disagree with the decision of the IRS Appeal.

These are the guidelines for filing a successful appeal against the trust fund recovery penalty.

If you or someone you know thinks that he/she is eligible for a claim of Trust Fund Recovery Penalty or any other Tax Liability issue now would be a great time to come in and let us help you resolve the issue. I can be contacted at (212) 320-8191 or by email at info@urgenttaxservices.com. 

Urgent Tax Services

6009 16th Ave,

Brooklyn, NY 11204

Ph. (212) 320-8191

Fax (646) 626-6447

sol@urgenttaxsrrvices.com

www.urgenttaxservices.com