Unpaid payroll taxes? Watch out for the trust fund recovery penalty
Abstract: The trust fund recovery penalty (TFRP) is one of the harshest penalties in the Internal Revenue Code. This penalty isn’t new, but the pandemic has thrust it into the spotlight. This article discusses how the TFRP applies and how liability is determined. A sidebar explains that shifting payroll tax liabilities to a certified professional employer organization (CPEO) can help ensure payroll taxes are paid properly.