Trust Fund Recovery Penalty – What Oklahoma Business Owners Need to Know
If your Oklahoma business owes payroll taxes, the IRS isn’t just looking at the company.
They may come after you — personally.
Through a tool called the Trust Fund Recovery Penalty (TFRP), the IRS can hold owners, officers, managers, and even bookkeepers personally responsible for unpaid payroll taxes.
At Summit Tax Relief, we help business owners and individuals defend themselves against TFRP assessments — and reduce the risk of financial devastation.
What Is the Trust Fund Recovery Penalty?
When your business withholds:
- Social Security
- Medicare
- Federal income taxes
…you’re holding those funds “in trust” for the IRS. If they’re not deposited correctly, the IRS considers it theft from your employees — and they can assign the debt personally to those responsible.
That’s the Trust Fund Recovery Penalty — an assessment made against individuals who were:
- Responsible for withholding, accounting for, and paying the taxes
- Willful in failing to remit them
Who Can Be Held Personally Liable?
- Business owners
- CEOs, CFOs, and managing officers
- Bookkeepers or payroll managers
- Accountants with signature authority
- Anyone with
control over payroll or finances
You don’t have to be the owner. If the IRS determines you had the ability to pay — and didn’t — they can assess the TFRP against you.
What Triggers a TFRP Investigation?
- You owe
Form 941 (payroll) taxes
- The business has stopped making federal tax deposits
- The IRS has assigned a
Revenue Officer
- You’ve received
Letter 1153 and
Form 2751 (proposed assessment)
- The IRS starts interviewing employees and officers about control of funds
Once you receive Letter 1153, you have 60 days to appeal.
Oklahoma Case Example
Client: Partner in a food services company in Oklahoma City
- Company failed to pay $62,000 in payroll taxes over 4 quarters
- Client no longer involved in day-to-day operations
- IRS attempted to assess TFRP
- We filed a protest, submitted documentation showing no financial control
- IRS dropped the proposed TFRP — no personal liability
How to Fight or Reduce the Trust Fund Penalty
- Challenge Responsibility or Willfulness
Prove you didn’t have authority, access, or knowledge. - Appeal Letter 1153 Assessment
File timely written protest within 60 days of notice. - Negotiate a Settlement or Abatement
If assessment is valid, explore hardship, Offer in Compromise, or CNC. - Protect Business Financials
Prevent further accrual of penalties by filing current 941s and making deposits. - Avoid Duplicate Assessments
If multiple individuals are assessed, ensure coordinated resolution strategies.
Why Work With Summit Tax Relief?
- Based in Oklahoma, experienced in local IRS enforcement trends
- Led by a licensed CPA familiar with payroll tax and TFRP defense
- We defend you with transcript review, evidence gathering, and IRS negotiation
- We help protect your assets, income, and future
- Flat-fee representation — no surprise billing
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Get Help Now
If the IRS is investigating you for a Trust Fund Recovery Penalty, don’t wait. Summit Tax Relief will defend your rights, challenge the assessment, and help protect what you’ve built.
📞 Call
(833) 477-4911
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Schedule Your Free Strategy Call
FAQ
Can the IRS really come after me personally for business taxes?
Yes — if the taxes are trust fund (withholding) taxes and the IRS believes you were responsible and willful.
What if I didn’t own the business?
Ownership isn’t required. If you had authority or signature power over finances, you may still be at risk.
Can the penalty be removed?
Yes — we can challenge it, appeal it, or negotiate settlement depending on your case.
Will this show up on my credit?
Not directly — but if the IRS files a lien for the assessed amount, it may affect financial background checks.
📣 About the Author
Marc Boulanger, CPA is the founder of Summit Tax Relief LLC, a boutique tax resolution firm based in Oklahoma City, OK and trusted by high-income individuals and business owners across Oklahoma.
He is the author of Oklahoma Taxpayers' Guide: Taking A Stand Against the IRS: A Step-by-Step Plan for Dealing With Tax Collectors and Unfiled Returns Without Going Broke, available now on Amazon. The book offers a step-by-step plan for resolving IRS tax debt without losing your business, your home, or your peace of mind.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.summittaxrelief.com or call (833) 477-4911.
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