Skip to main content

You Are Not The First. You Will Not Be The Last.

Payroll Tax Problems

Resolve trust fund recovery penalties and payroll tax delinquencies.

IRC Authority§ 6672 (TFRP)
Personal LiabilityYes — owners, officers, even bookkeepers
IRS PriorityHighest enforcement priority
Criminal RiskYes — willful non-payment
Free · Confidential · Today

Talk To A Real Tax Attorney

One honest conversation. You'll hang up knowing exactly what the IRS can — and can't — do to you, and how we'll stop them.

Call (877) 829-5267
Privileged Mon–Fri 8–5
Legally reviewed byGregory McCauley Jr., Esq.

Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court

Last reviewed
What This Actually Is — And How We End It

The Truth About Payroll Tax Problems — And What To Do Right Now

Payroll tax debt is one of the most serious tax problems a business can face. The IRS considers unpaid payroll taxes — money withheld from employees' paychecks — to be essentially stolen from the government. They pursue these cases more aggressively than any other type of tax debt.

Under IRC § 6672, the IRS can assess the Trust Fund Recovery Penalty (TFRP) against any "responsible person" — owners, officers, even bookkeepers — making them personally liable for the entire amount.

McCauley Law Offices defends business owners against TFRP assessments and negotiates resolutions for payroll tax debt, including Offers in Compromise and installment agreements.

Payroll taxes are the IRS's #1 enforcement priority. Unlike income tax debt, the IRS views unpaid payroll taxes as money you collected from employees and kept for yourself. This means faster collection action, higher penalties, and greater criminal exposure.

What Is the Trust Fund Recovery Penalty?

The TFRP is a 100% penalty equal to the trust fund portion of unpaid employment taxes — the income tax withheld and the employee's share of FICA. It can be assessed against any individual the IRS deems a "responsible person," including:

  • Business owners and partners
  • Corporate officers — CEO, CFO, Controller
  • Bookkeepers and payroll managers with check-signing authority
  • Board members who had authority over financial decisions
  • Anyone who had the duty and authority to collect, account for, and pay the taxes

The IRS can — and routinely does — assess the TFRP against multiple individuals simultaneously. Each person is jointly and severally liable for the full amount.

The IRS must prove two things to assess the TFRP: (1) you were a "responsible person" with authority over the company's finances, and (2) you "willfully" failed to pay the taxes. We challenge both elements aggressively — especially willfulness, which requires showing you knew the taxes were due and deliberately chose not to pay them.

How We Defend Against TFRP Assessments

  • Challenge responsible person status: Not everyone the IRS targets is actually a responsible person. We gather evidence showing you lacked the authority or control the IRS alleges.
  • Fight willfulness: If you were following orders from a superior, were misled by a partner, or didn't have knowledge of the non-payment, you may have a defense.
  • Negotiate the amount: Even if liability can't be eliminated, we can often negotiate an Offer in Compromise or installment agreement on the penalty amount.
  • Allocate liability: When multiple responsible persons exist, we work to ensure the IRS pursues all parties — not just our client.
You Are Not Alone

People Just Like You Have Sat In This Exact Chair

They were terrified. They were ashamed. They thought they were the only one. Then they made one phone call — and everything changed.

Restaurant Owner with $182,000 in Payroll Debt

A Philadelphia restaurant owner fell behind on payroll taxes during COVID. The IRS assessed $182,000 including trust fund penalties against him personally. We negotiated an Offer in Compromise for $12,500.

TFRP Defended at Form 4180 Interview

A Cherry Hill controller was identified as a potential responsible person for $187,000 in unpaid 941 taxes. We represented her at the Form 4180 interview, established lack of willfulness, and the TFRP was assessed only against the owner.

Business Survival Plan With In-Business IA

A Wilmington restaurant owed $94,000 in 941 taxes and faced imminent shutdown. We negotiated an in-business trust fund installment agreement with full current compliance, the business stayed open, and the balance is on track to be paid.

Every Day You Wait, The IRS Wins A Little More.

Penalties stack. Interest compounds. Legal options quietly disappear. One free call ends the spiral.

Call (877) 829-5267
From Panic To Peace Of Mind

Exactly How We Take This Off Your Shoulders

The hardest step is the first one. Everything after that, we carry for you. No surprises. No runaround. No lectures.

  1. 1

    Get current immediately

    No payroll tax resolution works without current compliance. We help you stop the bleeding before negotiating the past.

  2. 2

    Quantify business vs. trust fund exposure

    We separate the employer share, trust fund portion, penalties, and interest — the negotiation differs for each component.

  3. 3

    Prepare for the Form 4180 interview

    The TFRP determination turns on this interview. We prep every potential responsible person and represent them through it.

  4. 4

    Negotiate the business resolution

    In-business installment, partial-pay, or OIC — matched to cash flow and the Revenue Officer's expectations.

  5. 5

    Resolve individual TFRP exposure

    Once assessed personally, the TFRP can be addressed with installment, CNC, OIC, or — in some cases — bankruptcy.

4.9 out of 5
on Google

Trusted by Thousands of Taxpayers

Real results from real clients

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

"After years of IRS letters and threats, Gregory and his team got my penalties completely removed. They were professional, responsive, and genuinely cared about my case."

"They stopped a wage garnishment within 48 hours and ultimately settled my case for pennies on the dollar. I can't recommend them enough."

"I hadn't filed taxes in 5 years and was terrified. McCauley Law handled everything — filed all my returns, negotiated with the IRS, and got my penalties reduced by 80%."

"As a small business owner, I was facing $250,000 in payroll tax debt. Their team negotiated an Offer in Compromise that saved my business."

"My ex-husband's tax fraud left me liable for $135,000. McCauley Law got full innocent spouse relief — I owe nothing. They gave me my life back."

"Facing criminal tax charges was the worst experience of my life. Gregory McCauley's defense was brilliant — charges reduced, no prison time. Forever grateful."

"The IRS had a lien on my home and was threatening seizure. McCauley Law negotiated a manageable payment plan and got the lien subordinated so I could refinance."

"Professional, knowledgeable, and responsive. They explained every step of the process and kept me informed throughout. Resolved my $92,000 tax debt for $8,500."

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

"After years of IRS letters and threats, Gregory and his team got my penalties completely removed. They were professional, responsive, and genuinely cared about my case."

"They stopped a wage garnishment within 48 hours and ultimately settled my case for pennies on the dollar. I can't recommend them enough."

"I hadn't filed taxes in 5 years and was terrified. McCauley Law handled everything — filed all my returns, negotiated with the IRS, and got my penalties reduced by 80%."

"As a small business owner, I was facing $250,000 in payroll tax debt. Their team negotiated an Offer in Compromise that saved my business."

"My ex-husband's tax fraud left me liable for $135,000. McCauley Law got full innocent spouse relief — I owe nothing. They gave me my life back."

"Facing criminal tax charges was the worst experience of my life. Gregory McCauley's defense was brilliant — charges reduced, no prison time. Forever grateful."

Google Review

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

RM

Robert M.

Philadelphia, PA

1 / 8

FAQs

The Questions Keeping You Up At Night — Answered

One Phone Call. Or Another Sleepless Night.

Stop Letting The IRS Own Your Mornings.

You already know what happens if you do nothing. Pick up the phone for a free, confidential conversation with a real tax attorney — 30+ years inside the IRS playbook — and finally start fighting back.

Call (877) 829-5267 Now
100% Free 100% Confidential Attorney‑Client Privileged