Why Form 3520 Penalties 2023-2024

Hey, it's tax quips time from TaxMama. Calm today, TaxBoy hears from Stephen. Attack scripts form with a big problem: he says the IRS wants me to sign a trust fund recovery form accepting personal responsibility for corporate 941 back taxes. They're making this a requirement as part of a full pay installment agreement. They're telling me that they will assess me even if I don't sign. What happens if I don't sign for them? Will Steve, as Brian Lehrer Hoff the EA in Fair Lawn, New Jersey, says if you're responsible officer of the corporation and you don't sign the agreement, the IRS can lean or levy to collect their money anyway. Brian is right, trust fund monies are considered sacred. To understand why, you need to understand what the trust fund penalty is. This is the amount of money you withheld from your employees' paychecks for their share of FICA Medicare and income tax withholding. The IRS, the government, the courts, and anyone with a brain consider it theft when you don't pay in the funds you deducted from your employees' paychecks to cover their taxes. That wasn't your money to spend. So, if you want the IRS to reduce your taxes on that installment agreement or to agree to the installment agreement, you will most likely need to accept responsibility for the trust fund penalty. After all, there is no way to make the trust fund penalty go away. You can't bankrupt it either. The only thing to consider is who else is responsible for paying those taxes. Can you get them to cough up some of that money? If you can't get it yet, do you think you can get it from them in the future? What you may want to do is sign the IRS...