Trust Fund Recovery Penalty (TFRP):
If you are a person responsible for collecting/withholding, accounting for, and depositing or paying specified taxes including non-resident alien (NRA) withholding, employment or excises taxes, and willfully fail to do so, you can be held personally liable for a penalty equal to the full amount of the tax that was not paid, plus interest. A responsible person for this purpose can be an owner or officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. A trustee or agent with authority over the funds of the business can also be held responsible for the penalty. The assessment of the trust fund recovery penalty is applicable to the
following tax forms: CT-1, 720, 941, 943, 944, 945, 1042, and 8288. A
Trust Fund Recovery Penalty usually may be filed as a Small Case Request
or a Formal Written Request.
Small Case Request
If the total amount of the proposed assessment for each tax period is $25,000 or less, you may file a small case request. If more than one tax period is involved and any tax period exceeds the $25,000 threshold, a formal written protest for all periods must be filed.
Send a letter stating that you want to Appeal the proposed assessment(s) to the attention of the IRS officer whose name and address are listed on the letter (Letter 1153) that you received. Enclose a copy of the Letter 1153 and include your name, address, social security number, and daytime telephone number. Explain why you don't believe you are responsible for the unpaid taxes and/or the reason you disagree with the amount of the proposed assessment(s).
Formal Written Protest
If the total amount of the proposed assessment for any one tax period is greater than $25,000, you must file a formal written protest for all periods. Send your formal written protest to the attention of the IRS officer whose name and address are listed on the letter (Letter 1153) that you received.
- Include a statement that you want to appeal the proposed assessment(s).
- Include your name, address, social security number, and daytime telephone number.
- Enclose a copy of the Letter 1153.
- List the tax periods involved.
- Explain
why you don't believe you are responsible for the unpaid taxes or the
reason you disagree with the amount of the proposed assessment(s).
- Include a clear explanation of your duties and responsibilities.
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- Cite the law or authority, if any, on which you are relying.
- Sign
the written protest under the penalties of perjury, by making the
following statement: “Under the penalties of perjury, I declare that I
examined the facts stated in this protest, including any accompanying
documents, and, to the best of my knowledge and belief, they are true,
correct, and complete.”
You can represent yourself in Appeals, and you may bring another person with you to support your position. If you want to be represented by someone, the person you choose to represent you must be an attorney, a certified public accountant, or an enrolled agent authorized to practice before the IRS. If you plan to have your representative talk to us without you, we need a copy of a completed power of attorney Form 2848, Power of Attorney and Declaration of Representative.
This office has appealed many cases within the IRS. We drafted complaints and served the Commission of the Department of Revenue Services in cases where the taxpayer did not agree with the State of Connecticut. We also appealed threats of Levy from the IRS. These appeals are generally considered either a Collection Due Process Hearing or an Equivalent Hearing. These appeal rights are extremely important and should be exercised under the right circumstances. Failure to appeal may result in immediate levies or garnishments.
If you decided to represent yourself during the audit phase and would like to hire us to represent you on Appeal, its not too late to do so. If you receive a letter threatening to Levy, you must contact us immediately so this office may file a timely appeal. We will either file the appeal or contact the auditor to discuss your file and let him or her know that we intend on appealing.
Please feel free to contact us at your earliest convenience to discuss you case.