What this notice is about
We charged you a trust fund recovery penalty (TFRP) for willfully failing to collect, account for, pay over or otherwise evade paying employment or excise taxes.
What you need to do
- Read your notice carefully. It will explain your amount due, due date, and payment options.
- Make your payment by the due date. You can visit our payments page or use the IRS2Go mobile app to learn about your payment options.
Frequently asked questions
We charged you the TFRP for willfully failing to collect, account for, or pay employment or excise taxes. Find additional information for Employment taxes and the Trust Fund Recovery Penalty (TFRP).
You can apply online for a payment plan (including installment agreements).
You will continue to be charged interest until the balance is paid.
Yes, interest will continue to be added if you don’t pay the full amount you owe by the date on the payment coupon.
To contest the penalty, you must:
- Pay the portion of the TFRP attributable to one employee (i.e., the withheld tax for one employee) for each quarter the penalty was charged if the TFRP is based on employment taxes, or
Pay the portion of the TFRP attributable to one transaction for each quarter the penalty was charged if the claim relates to a TFRP for excise taxes, and
- File a claim for refund on Form 843, Claim for Refund and Request for Abatement, for each quarter at issue.
To suspend collection of the penalty, you must file your claim for refund and make the applicable payment. You must also post a bond with us for one and a half times the balance owed (the penalty amount minus any payments made).
Helpful information
Need help?
- You can authorize someone to represent you before the IRS or inspect and/or receive confidential tax information.
- You may be eligible for free help from the Taxpayer Advocate Service (TAS).
- See if you qualify for help from a Low Income Taxpayer Clinic.
- You can request a copy of your notice or letter in Braille or large print.
- If you can’t find what you need online, call the telephone number on your notice or letter.