Trust Fund Recovery Penalty
/ˈtrʌst fʌnd rɪˈkʌvəri ˈpɛnəlti/
Definitions
- (n.) A penalty imposed by the IRS on individuals responsible for collecting, accounting for, and paying withheld payroll taxes who willfully fail to do so.
The IRS assessed a trust fund recovery penalty against the company’s CFO for unpaid payroll taxes.
Forms
- trust fund recovery penalty
- trust fund recovery penalties
Related terms
See also
Commentary
This term specifically applies in tax law and relates to personal liability for trust fund taxes; clarity about the willfulness requirement is critical in enforcement.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.