The Truth About Internal Revenue Code § 6672

The Internal Revenue Service (IRS) collects payroll taxes for social security payments. Therefore, it resolutely chases down firms that make deductions from employees’ salaries but don’t submit the contributions on time.

Sometimes individuals within the company that are oblivious to the various rules can also land up in the soup through no fault of their own. The hefty penalties and interest can soon add up and make one feel like they’re carrying the weight of the world on their shoulders.

So, to ensure you follow the right course of action, the experts at Christopher G Carmona CPA, APC have demystified Internal Revenue Code § 6672. Read on to learn more.

The general rule:

IRC § 6672 allows the Internal Revenue Service to recover “trust funds” withheld from employee’s pay from “any person required to collect, truthfully account for, and pay over any tax imposed.” It also includes “Those who willfully fail to collect such taxes, or truthfully account for and pay over such tax, or willfully attempt to evade or defeat any such tax or the payment thereof.”

There are two critical elements required for an individual or business to be held responsible for the Trust Fund Recovery Penalty (TFRP) under IRC § 6672:

1. The person had to be required to collect, account, and pay over the payroll taxes, and
2. The person’s failure to do so must have been willful.

As a result, if you failed to collect and submit payroll taxes properly and require professional representation, contact our office today. At Christopher G Carmona CPA, APC, we are an experienced CPA firm in Diamond Bar, CA. Our founder has been practicing public accounting since 2005 and has expertise in forensic accounting.

The specialist knowledge helps us to take care of IRS notices, IRS audits, IRS penalties, unfiled tax returns, innocent spouse relief, and IRS payroll tax debt relief. We also assist clients that owe money to the IRS.

We serve clients across Diamond Bar, Los Angeles, Oceanside, Orange County, Riverside County, San Diego County, and the surrounding areas.

To learn more about our services, please visit our website here or get in touch with us by clicking here.