Segal, Cohen & Landis, P.C.
Defend Against IRS Payroll Tax Problems and Trust Fund Penalties
IRS tax attorneys — Beverly Hills, CA. National representation.
Payroll tax problems are among the most serious IRS issues a business owner can face — because unpaid payroll taxes can result in personal liability for individuals who had decision-making authority over the business's finances. The Trust Fund Recovery Penalty (TFRP) allows the IRS to pierce the corporate veil and hold responsible parties personally liable for the employee portion of unpaid payroll taxes. This means that even if your business is closed, bankrupt, or dissolved, you personally can owe the IRS hundreds of thousands of dollars. Segal, Cohen & Landis represents business owners, officers, CFOs, bookkeepers, and other individuals targeted by TFRP investigations. We also negotiate resolutions for ongoing payroll tax liabilities before they escalate to TFRP assessments.
How We Help
Our Approach to Payroll Tax Attorney
TFRP Defense
The IRS must establish that you were a 'responsible person' who 'willfully' failed to pay over payroll taxes. We challenge both elements — reviewing whether you had actual authority over payroll decisions and whether the failure was truly willful versus a product of cash flow emergencies or reliance on others.
TFRP Interview Representation
Before assessing the TFRP, the IRS conducts an interview (Form 4180). What you say in this interview can determine whether you are personally assessed. We attend these interviews with clients and manage every question and response.
Payroll Tax Installment Agreements
For businesses with ongoing payroll tax liabilities, we negotiate installment agreements with the IRS while the business continues operating, ensuring current tax deposits are made and past liabilities are addressed in a structured way.
Officer and Shareholder Allocation
Where multiple individuals are potentially responsible, the TFRP liability can be allocated. We ensure that responsibility is properly allocated and that no individual is held liable for amounts attributable to others.
How It Works
The Resolution Process
Immediate Consultation
Payroll tax problems escalate quickly. We review your situation immediately — the amount owed, the periods at issue, and whether a TFRP investigation has started or is likely.
Transcript and Records Analysis
We pull all relevant IRS transcripts and business records to build the factual foundation for defense.
TFRP Interview
If the IRS has scheduled a Form 4180 interview, we prepare you thoroughly and attend with you.
Resolution
Whether through challenging the TFRP assessment, negotiating an installment agreement, or submitting an OIC, we execute the resolution strategy that achieves the best outcome for you personally and for the business.
Ready to Resolve Your Tax Problem?
Our attorneys have helped thousands of clients resolve IRS matters. Your consultation is free and confidential.
Common Questions
Frequently Asked Questions
Who can be held personally liable for payroll taxes?+
Anyone who had significant decision-making authority over payroll tax deposits — including owners, officers, shareholders, CFOs, and even bookkeepers or controllers with check-signing authority — can be assessed the Trust Fund Recovery Penalty. The IRS looks at who had authority, not just who signed checks.
What is the Trust Fund Recovery Penalty?+
The TFRP equals 100% of the trust fund portion of unpaid payroll taxes — the employee's share of Social Security, Medicare, and withheld income taxes. It does not include the employer's matching share.
Does closing the business eliminate payroll tax liability?+
No. Closing or dissolving the business does not extinguish payroll tax obligations. The IRS can still assess the TFRP personally and pursue collection from individuals after the business ceases operating.
Can multiple people be assessed for the same payroll tax debt?+
Yes. Multiple responsible persons can each be assessed the full TFRP amount — but the IRS can only collect 100% of the underlying tax in total. Once the full amount is collected from any combination of responsible persons, the remaining assessments are credited.
Further reading
Beverly Hills · Los Angeles · National
Segal, Cohen & Landis, P.C.
9100 Wilshire Boulevard, 601 East Tower, Beverly Hills, CA 90212
Free Confidential Consultation