Listen Up: The IRS Must Consider a Pre-Assessment Appeal Before Issuing a Trust Fund Recovery Penalty Assessment

IRS BuildingSection 6672 of the Internal Revenue Code provides the IRS with the authority to assess the trust fund recovery penalty, which imposes personal liability for employees’ FICA and income taxes on responsible officials affiliated with an employer. I.R.C. § 6672(a). Before the penalty is imposed, the statute provides for individual notice. I.R.C. § 6672(b)(1) (“No penalty shall be imposed under subsection (a) unless the Secretary notifies the taxpayer in writing by mail . . . or in person that the taxpayer shall be subject to an assessment of such penalty.”). The issuance of the notice generally tolls the assessment statute of limitations for ninety days, but “if there is a timely protest of the proposed assessment,” the statute is tolled until “the date 30 days after the Secretary makes a final administrative determination with respect to such protest.” I.R.C.… Read More