The Irs Collection Process Publication 594 (Page 8 of 8) in pdf

Page 8

Information for employers:

you have 10 days from the date of the

If you disagree with the penalty,

letter to let us know that you don’t agree with the proposed assessment,

Collection of employment tax

have additional information to support your case, or want to try to

resolve the matter informally. If you can’t resolve the disagreement

with us, you have 60 days from the date of the letter to appeal with the

About employment taxes

Office of Appeals. For more information, see Publication 5, Your Appeal

Employment taxes are the amount you must withhold from your

Rights and How to Prepare a Protest if You Don’t Agree.

employees for their income tax and Social Security/Medicare tax, plus

we’ll assess the penalty amount

If you don’t respond to the letter,

the amount of Social Security/Medicare tax you pay for each employee.

against you personally and begin the collection process to collect it.

Federal unemployment taxes are also considered employment taxes.

We may assess this penalty against a responsible person regardless of

What we’ll do if you don’t pay your employment taxes:

whether the company is still in business.

•

Assess a failure to deposit penalty, up to 15% of the amount not

Additional information

deposited in a timely manner.

•

We may propose a Trust Fund Recovery Penalty assessment against

the individuals responsible for failing to pay the trust fund taxes.

Innocent Spouse Relief

About trust fund taxes

Generally, both you and your spouse are responsible, jointly and

Trust fund taxes are the income tax, Social Security tax, and Medicare

individually, for paying any tax, interest, or penalties on your joint return.

tax withheld from the employee’s wages. They are called trust fund taxes

If you believe your current or former spouse should be solely responsible

because the employer holds these funds “in trust” for the government

for an incorrect item or an underpayment of tax on your joint tax return,

until it submits them in a federal tax deposit. Certain excise taxes are

you may be eligible for Innocent Spouse Relief. This could change the

also considered trust fund taxes because they are collected and held

amount you owe, or you may be entitled to a refund. Keep in mind you

in trust for the government until submitted in a federal tax deposit.

generally must submit Form 8857, Request for Innocent Spouse Relief,

For more information, see Publication 510, Excise Taxes.

no later than two years from the date of our first attempt to collect

the outstanding debt, except for requests for equitable relief under

To encourage prompt payment of withheld employment taxes and

Internal Revenue Code section 6015(f). For additional information, see

collected excise taxes, Congress has passed a law that provides for the

Publication 971, Innocent Spouse Relief.

Trust Fund Recovery Penalty. For more information, see Publication 15,

Circular E, Employer’s Tax Guide.

Representation during the collection process

During the collection process, a hearing, or an appeal, you can be

Trust Fund Recovery Penalty

represented by yourself, an attorney, a certified public accountant, an

The Trust Fund Recovery Penalty is a penalty that is assessed personally

enrolled agent, an immediate family member, or any person enrolled to

against the individual or individuals who are responsible for paying the

practice before the IRS. If you’re a business, you can also be represented

trust fund taxes but willfully did not do so. The amount of the penalty

by full-time employees, general partners, or bona fide officers.

is equal to the amount of the unpaid trust fund taxes. For additional

information, please see Notice 784, Could You be Personally Liable for

To have your representative appear before us, contact us on your behalf,

Certain Unpaid Federal Taxes?, or visit

and/or receive your confidential material, file Form 2848, Power of

article/0,,id=108357,00.html.

Attorney and Declaration of Representative.

If the Trust Fund Recovery Penalty is proposed against you

To authorize someone to receive or inspect confidential material, file

You’ll receive a letter and Form 2751, Proposed Assessment of Trust

Form 8821, Tax Information Authorization.

Fund Recovery Penalty.

Sharing your tax information

sign and return Form 2751 within

If you agree with the penalty,

During the collection process, we’re authorized to share your tax

60 days from the date of the letter. To avoid the assessment of

information in some cases with city and state tax agencies, the

the Trust Fund Recovery Penalty, you may also pay the trust fund

Department of Justice, federal agencies, people you authorize to represent

taxes personally.

you, and certain foreign governments (under tax treaty provisions).

We may contact a third party

The law allows us to contact others (such as neighbors, banks,

employers, or employees) to investigate your case. You have the right

to request a list of third parties contacted about your case.

Publication 594 (Rev. 4-2012) Catalog Number 46596B Department of the Treasury Internal Revenue Service

The Irs Collection Process Publication 594 Page 8

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