Jacksonville Trust Fund Recovery Penalty Attorney

Dedicated Trust Fund Recovery Penalty Lawyer in Jacksonville, FL

Employment and business taxes are complex, and it’s important to handle them properly. A trust fund recovery penalty is a very serious type of penalty. It can hold you personally liable for business payroll taxes owed to the Internal Revenue Service (IRS). If you are facing this penalty, you need a Jacksonville trust fund recovery penalty attorney by your side. They can quickly address the debt the business owes.

Trust Fund Taxes Owed to the IRS

Trust fund taxes are the taxes held by employers and withheld from their employees’ paychecks. A major part of these taxes is the Federal Insurance Contributions Act (FICA) tax, including the employee’s half of Medicare and Social Security taxes. Withheld taxes also include the federal income tax for employees. The employer acts as the trustee for those withheld taxes, but they owe those taxes to the federal government. They cannot be used for anything else.

Matter Types We Handle in Jacksonville, FL

The Trust Fund Recovery Penalty

The trust fund recovery penalty (TFRP) exists to encourage compliance when paying these withheld taxes. If the taxes are not paid immediately, the TFRP may be assessed, and any person who was responsible for paying the taxes could be held liable for the full amount of taxes the business owes.

The IRS assessed over a trillion in civil penalties on employment taxes in 2025, including $55.5 billion in business income tax penalties. These civil penalties are very different from the TFRP. While these other penalties are restricted to holding the business liable, a TFRP holds individuals liable, bypassing the usual protections that corporations and other business structures offer. Your personal income, property, and other assets can be at risk due to trust fund recovery penalty charges.

If you fail to pay the IRS the amount owed, you could face collection actions like property liens, wage garnishments, bank levies, and levies on other property.

Who Is Liable for the Trust Fund Recovery Penalty?

You might be liable for the TFRP if both of the following are true:

1. You are responsible for withholding, collecting, and paying the trust fund taxes.
2. You willfully failed to withhold, collect, and pay the tax.

You could be liable if you are a corporate officer, a sole proprietor, a board member, a third-party payer, a partner, a trustee, or an employee who meets the qualifications. The IRS considers a responsible party to be any person with the ability and duty to control accounting, collection, and payment of the tax.

You are considered willful if you both:

1. Were aware of, or should have been aware of, the taxes that were owed to the IRS.
2. Intentionally did not follow the law or were indifferent to its legal requirements.

You do not have to have any malicious intent to be considered willful; the action only needs to be voluntary, conscious, and purposeful. When the investigation for the unpaid taxes occurs, the IRS will also determine the responsibilities of all parties in the company to uncover who is liable. It is crucial that you work with an IRS tax attorney to protect your interests and financial future.

How Much Is a Trust Fund Recovery Penalty?

The TFRP amount is the same as the tax owed to the IRS for the trust fund tax. Many IRS penalties are a percentage of the tax owed, but this is not the case for the TFRP penalty. You can be liable for the entire amount, which is often substantial.

FAQs About Jacksonville, FL Trust Fund Recovery Penalty Law

What Is the Statute of Limitations on the Trust Fund Recovery Penalty?

The statute of limitations on a trust fund recovery penalty is usually ten years. The IRS must assess a tax penalty within three years. It then has ten years after the assessment to collect the tax. However, you shouldn’t just wait out this time limit. The agency will take aggressive collection actions as the deadline gets closer. Additionally, there are many reasons why the 10-year time limit could be extended or paused.

Who May Be Assessed for the Trust Fund Recovery Penalty?

You could be assessed for the trust fund recovery penalty if:

1. You were responsible for collecting the tax or paying it.
2. You purposefully failed to collect or pay the tax.

Because anyone responsible and willful can be held liable, it means that many parties in the business could be held liable. The business’s owners, partners, corporate officers, board members, third-party payers, directors, shareholders, and bookkeepers might all be liable.

Is There an IRS Office in Jacksonville, Florida?

Yes, there is an IRS office in Jacksonville, Florida. The Taxpayer Assistance Center (TAC) office is located at 400 West Bay Street in the city center. TAC offices let you get in-person support from the IRS. If you are managing your case with the help of an IRS attorney, they could prepare you for a TAC office appointment, or they could directly represent you and negotiate your case with the IRS.

Why Do You Need to Hire a Trust Fund Recovery Penalty Attorney in Jacksonville?

It’s important to hire a trust fund recovery penalty attorney in Jacksonville because this penalty can have serious personal financial consequences for your life. There are steps to address the initial debt, along with options for negotiating the debt with the IRS. Determining what options you have and the most effective way to minimize your financial liability is easier when you have the support of an experienced attorney.

Addressing a Trust Fund Recovery Penalty in Jacksonville

The most effective way to avoid a TFRP is to make sure all payroll and employment taxes are paid. If you are facing a TFRP, our team at TaxSmith, LLC, can mount an experienced tax defense for your case. We can work to prove that you were not responsible for paying the tax or that you did not act willfully. We can also handle an appeal. Contact us today.

Serving Jacksonville and Northeast Florida

Tax problems can quickly become overwhelming, whether you’re facing an IRS audit, payroll tax issues, mounting penalties, or collection actions that threaten your financial future. From IRS audit defense and Trust Fund Recovery Penalty investigations to Innocent Spouse Relief, Offer in Compromise negotiations, and penalty abatement requests, navigating the federal tax system requires experienced legal guidance. Tax Smith LLC helps individuals and businesses throughout Jacksonville resolve complex tax disputes while working toward practical, long-term solutions that protect their financial well-being.

Serving Jacksonville and communities throughout Northeast Florida, Tax Smith LLC focuses exclusively on federal tax controversy and IRS resolution matters. The firm represents taxpayers in cases involving IRS audits, unpaid tax liabilities, Trust Fund Recovery Penalties, Innocent Spouse Relief, Offers in Compromise, penalty abatement, installment agreements, and other complex tax matters. By combining extensive knowledge of federal tax law with a personalized approach, Tax Smith LLC works to minimize financial exposure while helping clients confidently navigate every stage of the IRS resolution process.

From businesses operating in Downtown Jacksonville to taxpayers throughout Southside, Arlington, and the Beaches, as well as matters involving the IRS Jacksonville Taxpayer Assistance Center, Tax Smith LLC understands the challenges Florida taxpayers face when dealing with the Internal Revenue Service. Whether you need assistance with an IRS audit, Trust Fund Recovery Penalty investigation, Innocent Spouse Relief claim, or another tax controversy, partnering with experienced tax counsel can make the difference between facing aggressive IRS enforcement alone and achieving a resolution that protects your finances, business, and future.

Jacksonville, FL Trust Fund Recovery Penalty Law Additional Resources:

• Florida Employer Payroll Tax Obligations
• Independent Contractor vs. Employee Payroll Tax in Florida
• Trust Fund Recovery Penalty and Penalty Abatement
• What to Do When Facing a Payroll Tax Audit
• Penalties for Non-Payment of Payroll Taxes