Employment Tax & Trust Fund Recovery Penalties
Explains employer withholding obligations for payroll tax and how the IRS Trust Fund Recovery Penalty can create personal liability for a failure to remit it.
Seattle Employment Tax Lawyer
The IRS requires that employment tax be paid by both employer and employee. The employer pays half and withholds the other half from employees' paychecks, holding that money in trust for the federal government before remitting it. If an employer fails to remit the employees' portion of the employment tax, which is a trust fund (a fund held in trust by the employer for the federal government), that employer is at risk of facing serious consequences, including personal financial liability and even criminal prosecution of the employer's officers.
The Bellevue, Washington, taxation law firm of Lana Kurilova Rich PLLC provides representation to employers in the Greater Seattle area, statewide and nationwide. If you have been contacted by the IRS about an employment tax issue or trust fund recovery penalties, or you suspect you will be, call us at (425) 289-0629 for an initial phone consultation with our Seattle employment tax attorney.
Not Remitting Employment Tax Is Different Than Not Paying Income Tax, Our Washington Attorneys Can Help When You Face Trust Fund Recovery Penalties
Many employers who run afoul of the IRS because of failure to remit employment tax do not take the matter seriously. They believe that the issue is similar to failure to pay income tax. In reality, it is a much more serious issue with much more serious consequences.
Our first step is to explain the consequences. We will discuss the fact that the IRS can pierce the corporate veil in order to collect the trust fund recovery penalty from the individuals responsible for not timely remitting the trust fund. They can go after a business's owner or its officers and collect personal assets in these cases. Furthermore, not remitting employment taxes may be considered theft and can lead to criminal charges in certain circumstances.
Of course, our goal is to move quickly to prevent the matter from escalating to the criminal realm. If the IRS has made an error, we know how to work with them to resolve it. If employment taxes need to be remitted, we will determine the best method for getting your business back in good standing with the IRS.
Call (425) 289-0629 for an Initial Phone Consultation
We invite you to contact us today by phone or by e-mail to discuss your case with our experienced Washington trust fund recovery penalties lawyer. Find out how we can help. We serve clients nationwide.
About Attorney Lana Kurilova Rich
- Washington tax attorney since 2003: Lana Kurilova Rich has been admitted to the Washington State Bar since 2003 and has focused her practice on tax law since opening Lana Kurilova Rich, PLLC the same year.
- Master of Laws in Taxation (LL.M.): Lana earned her LL.M. in Taxation from the University of Washington School of Law in 2007 in addition to her J.D. from Seattle University School of Law in 2003.
- Former Court of Appeals law clerk: Lana served as Law Clerk to the Honorable Elaine Houghton of the Washington State Court of Appeals, Division II.
- Bilingual: English and Russian: Born and raised in Russia, Lana is fluent in Russian and licensed to practice law in the Russian Federation in addition to Washington State.
- Federal, state, and international scope: Lana represents clients before the IRS, Washington State agencies (DOR, ESD, and L&I), and on cross-border tax matters including FBAR and Form 8938 compliance.
- Direct attorney communication: Clients work directly with Lana Kurilova Rich, not a routing desk. Calls and emails are returned promptly throughout the engagement.
- Pro bono Low Income Taxpayer Clinic: Lana has volunteered with the Low Income Taxpayer Clinic since 2006, helping qualifying taxpayers resolve IRS disputes at no cost.
- Integrated tax preparation and bookkeeping: The firm provides federal and state tax preparation alongside legal representation, reducing handoffs and accelerating resolution.
We invite you to contact our Bellevue, Washington, law office today by phone or by e-mail to discuss your case with our experienced tax lawyer. We are here to help.