You Can Be Held Personally Liable For Business Taxes in Roseville, California

When the IRS targets businesses, the company is not the only one on the line. In certain circumstances, individual employees, owners or corporate officers can be held personally liable for the tax debts of the company.

I am attorney Brian Coggins. I can help shield you against liability for employment taxes. Contact my Roseville, California, law firm for help. I serve taxpayers throughout the Sacramento area. Call 916-270-2895 today for a free consultation.

The Trust Fund Recovery Penalty

Employers must withhold and remit income taxes, Federal Insurance Contributions Act (FICA) taxes and unemployment taxes from employee paychecks. Failure to accurately collect and pay these employment taxes can result in a large penalty, known as the Trust Fund Recovery Penalty (TFRP).

The TFRP can be substantial. The penalty is equal to the amount of employment tax owed plus interest. This effectively doubles the amount of employment tax owed. Unfortunately, the business is not the only taxpayer on the hook for the tax. The penalty can be assessed against anyone the IRS determines is a responsible person.

A responsible person is someone who has the duty, or the power, to collect, account for and pay employment taxes. This often means the following people are implicated:
  • Corporate officers
  • Directors
  • Shareholders
  • Bookkeepers and accountants
As well as any other employee who has the authority to direct these funds.

Do Not Speak To IRS Agents Without A Roseville Personal Liability Business Tax Lawyer Present

When determining whether an individual had the requisite control, the IRS will conduct an interview. Do not talk to IRS agents without a lawyer present. This is a formal interview. The answers you give will impact your personal liability.

IRS agents are highly trained, skilled tax professionals. You are not. You do not know the laws and regulations as well as the agent working on your case. But I do.

I’ve been working in the tax industry for more than 15 years. First as an accountant, now as a tax attorney. Over the years, I’ve helped shield many taxpayers against personal liability for employment taxes, and I can help you.

Many people unknowingly expose themselves to personal liability during these interviews. Don’t let this happen to you. Contact my firm today at 916-270-2895 to discuss your case in a free consultation.