Under IRC §6672, an IRS revenue agent can recommend that Trust Fund Recovery Penalty be asserted against any person required to collect, account for, and pay over trust fund taxes if they willfully fail to perform any of these activities. Individuals falling under these rules are known as "responsible persons". Where the penalty is imposed, the taxes can be collected from the pockets of the "responsible person." In this webinar, we will learn how this works, who is vulnerable, and best practices on the part of management in payroll operations.
Delegation of responsibilities will not avoid the trust fund penalty application. What matters is who has the control of funds, the authority to sign or co-sign checks and the actual signing or co-signing of checks, as well as other control. Responsible persons could include company officers, employees, directors or shareholders of a corporation, members or employees of a partnership, or other persons with sufficient control to direct disbursement of funds, whether or not they exercise that control directly. History has shown that sometimes even creditors or those who later acquire the business, and CPAs and accountants who keep the company books, as well as volunteer members of a company board have been found to be responsible persons. Members of charitable organizations are also not exempt.
Join noted payroll consultant Jerri LS Langer, with Cokala Tax Reporting Solutions, as she covers this topic. In this webinar you will learn:
Jerri Langer, JD, LLM, COKALA Tax Information Reporting Solutions, LLC
Jerri LS Langer, J.D., L.L.M., is a founding member of COKALA Tax Information Reporting solutions, and a nationally recognized information reporting and withholding consultant who provides a wide range of tax advisory services to many Fortune 500 companies around the world. She received her J.D. and L.L.M. in Taxation from the University of Florida College of Law (1982) and is a member of the Florida and Michigan bars. She is a past member of the IRS Commissioner's Information Reporting Program Advisory Committee (IRPAC) and served IRPAC as its Subcommittee Chair on Legislation and Regulatory Matters. Jerri was the founding Government Relations Chair for the National Association of Tax Reporting and Payroll Management (NATRPM) and currently serves on the NATRPM Board. In her previous role as Director in Balance Consulting, an organization specializing in tax reporting and withholding compliance, Jerri coordinated the firm's professional advisory services, as well as the administration of tax advisory services to financial industries.
Prior to joining Balance Consulting, she served ProBusiness Services Inc., a Fortune 500 payroll service company, as its chief tax compliance officer where she orchestrated a new merger & acquisition service, as well as managed tax controversy and government relations areas. Jerri learned much of her trade as a Director in Deloitte & Touche, where she gained a national reputation assisting clients in complying with domestic and international tax matters, as well as other tax reporting and withholding requirements.
Earlier, as a tax advisor on Wall Street, she gained significant operational experience in domestic and international brokerage, banking and insurance operations and product development, as well as in retirement plan and employee benefits processing. Jerri is the author of Aspen Publishers' Ohio Payroll Guide and contributes to Aspen Publisher's Payroll Answer Book, both widely circulated publications.
She also authored the first BNA Tax Portfolio on U.S. Information Reporting and Backup Withholding, and is frequently quoted in many trade journals.