A Form 4180 interview is conducted by an IRS Revenue Officer to identify the people at a business who would have been responsible for remittance of unpaid trust fund taxes.  The interview is usually conducted in person, and it gives you a chance to explain why you were not willful or responsible for the nonpayment.

Call our local TFRP attorney if you have been contacted by a Revenue Officer to complete a Form 4180 interview in Washington DC.

What Can Trigger the Interview?

The Revenue Officer must attempt to interview all parties who are potentially responsible for the non-payment of employment taxes. Most people do not reply to the letter if they are not represented by counsel, but if you do not believe that you should be named as an individual responsible for making payroll tax payments, it is in your best interest to participate in this interview.

Which People in the Business Are Asked to Complete  a 4180 Interview?

Anyone who has signatory authority on a business bank account, has authority to determine which bills get paid, or is able to make any sort of financial decisions for the business may be asked for an interview. This would typically include the owners, officers, head of finance or payroll, officer managers, or other similar positions.

Individuals who are contacted to complete an interview are not forced to show up, but it would be in their interest to do so, because otherwise the IRS may just assess them with the trust fund recovery penalty without hearing their side of the story.

The IRS is not required to complete a Form 4180 interview in order to propose an assessment, they are only required to request an interview. However, it may be in the taxpayer’s best interest to cooperate, especially if they feel that they were not responsible for payment of the Trust Fund taxes or were not willful in failing to complete them.

Questions Asked in a Form 4180 Interview

The interview will ask questions about who was responsible for various decisions and had various responsibilities within the company.

  • Are you responsible for setting the financial policy of the company?
  • Are you authorized to make payments for bills or creditors?
  • Do you prepare, sign, or send payroll tax returns?
  • Are you authorized to make payroll payments?
  • Did  you know that the taxes were not being paid?
  • Do you have signature authority over the bank accounts?
  • Were you making payments to other organizations or paying other bills before you made payment to the IRS?

A Washington DC lawyer is allowed to be present at a Form 4180 interview, and if you inform the Revenue Officer that you will be hiring legal counsel, the interview would be suspended to allow you to hire an attorney.

Lawyers can help to prepare their client for an interview, and in fact, it is highly recommended. The more prepared the taxpayer is, the easier it will be for all parties involved. You can prepare for the interview by reviewing and  understanding your role with the company in relation to finances, who ultimately did have the responsibility to calculate and pay the payroll taxes to the IRS, and what policies were in place for paying the trust fund taxes.

Call Our Washington DC Firm to Prepare for Your IRS Form 4180 Interview

In the event you are called upon to participate in a Form 4180 interview regarding the trust fund recovery penalty, our DC-based team can help you before, during, and after. Call us today to learn what comes next.