Employers are required by law to withhold employment taxes from their employees’ paychecks. This includes income tax, Medicare tax, and Social Security.

The employer must hold those funds in trust until it is time to remit them to the Internal Revenue Service (IRS). A failure to take these steps could result in an IRS investigation and the implementation of criminal penalties. The employer is also required to remit to the IRS their portion of Social Security and Medicare taxes on behalf of their employees.

A Washington DC trust fund recovery penalty lawyer could help individuals facing an investigation for a failure to remit employee trust fund taxes. This assistance can include explaining their duties under the law, reviewing the steps that they took, and taking the lead towards settling the dispute. A focused tax lawyer could help you sort out this matter with the IRS.

The Role of Businesses in Paying Employee Taxes

Most workers must provide payment in the form of taxes to the government. The government places the burden on employers to directly withhold these taxes from every paycheck and businesses must hold these funds in trust until the date of payment arrives. In addition, they must file a Form 941 every quarter, as well as a Form 940 once a year for unemployment tax returns.

It is a violation of U.S. tax law to fail to file these withheld taxes to the IRS. If the IRS suspects a violation, they may initiate an investigation into the business. In rare cases, they can shut down a business and liquidate assets in order to acquire the owed amounts. A Washington DC trust fund management lawyer could provide more information about the role of businesses in paying the taxes of their employees.

Helping to Fight Back Against Allegations of Tax Controversies

The IRS takes an active role in investigating tax controversies. This includes not just an apparent failure to pay, but also actions that may prevent the efficient collection of taxes. If a business fails to properly file their trust fund, the IRS may assess the Trust Fund Recovery Penalty (TFRP) against company officers and responsible parties. A local trust fund recovery penalty attorney could help someone assert that they were not the party responsible for remitting the trust fund to the government.

In other situations, it may be best to request an installment agreement, wherein the business agrees to pay the owed tax in monthly payments as opposed to a lump sum. Alternatively, if they cannot settle the full tax debt, a legal professional could help them file an Offer in Compromise, which reduces what they ultimately owe. This can also be structured as an installment agreement.

In addition, a lawyer is available to assist in defending employers from IRS audit efforts to reclassify workers from independent contractors to employees.

Ask a Washington DC Trust Fund Recovery Penalty Attorney for Help

If you are being investigated for violations involving the requirement to file employee taxes held in trust, you do not have to handle this matter on your own. The IRS can take steps to impose the TFRP that equals the amount in controversy.

A Washington DC trust fund recovery penalty lawyer is available to work with you. An attorney could explain your role under the tax code, determine if you were the party responsible for remitting the trust, and discuss the possibility of alternative payment plans. Place a call today for a consultation.

Attorney John Pontius

Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC,  Rockville, MD, Bethesda, MD, Fairfax, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.

Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.

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...
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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 .
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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.
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