Employers are required to withhold Social Security taxes, Medicare taxes, and income tax from employee wages. These are typically called withholding taxes or trust fund taxes because these funds always belonged to the IRS and were held by the employer in trust. Employers are required to submit the trust fund taxes to the IRS. Additionally, the employer needs to file with the IRS quarterly employment tax returns on Form 941 and annual unemployment tax returns on Form 940. The IRS aggressively enforces the collection of unpaid trust fund taxes along with interest and penalties. In addition to pursuing the employer, the IRS may assess the Trust Fund Recovery Penalty for the full amount of the trust fund taxes against company officers and responsible parties. The IRS has the power to shut down the business and liquidate the assets to pay the trust fund taxes. Furthermore, the IRS can criminally prosecute company officers and responsible parties who willfully fail to file employment tax returns or to pay the trust fund taxes of the employer. Reach out to a Washington DC trust fund recovery penalty lawyer for a consultation.


Client Reviews

John helped us with a DC tax audit and succeeded in getting us a "no change" final decision. The issues were related to two flow-through entities and the use of carry-forward operating losses -- something that the DC auditors struggled to understand and with which they did not have any...
Paul A
Mr. Pontius is extremely professional and was able to take care of my tax returns which includes international bank accounts quickly and at a very reasonable price. Would definitely recommend.
I received a fee this past November from the IRS for over $800 because of an error I made on my 2016 taxes. I called my cousin, John Pontius, and he immediately knew what steps needed to be taken. Thanks to him, the fee was cleared. A 10 minute conversation...
As an American citizen living in the Middle East my local banker informed me that I needed to file FBARs and report my worldwide income to the IRS. Through the recommendation of another attorney at an international law firm, I was introduced to John Pontius. Mr. Pontius efficiently and effectively...
Kareem S
John handled a difficult IRS lien for my client. He was excellent in getting the lien released so we could close on the property. I would highly recommend John .
Bobbie M
We were seeking tax advice with managing two properties, LLC, as well as some future financial planning. John responded to my call in a timely manner and was happy to answer our questions while referring us to specialists who can manage our accounts on a more regular basis.
Janelle M
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