Federal · Internal Revenue Service
Proposed trust fund recovery penalty
Letter 1153 · Form 2751
- What it is
- The IRS proposes to hold an individual personally liable for the unpaid withheld income and employment taxes of a business, on the theory that the person was responsible for collecting and paying them over and willfully failed to. The penalty equals the trust fund portion of the unpaid tax.
- The clock it starts
- 60 days from the letter date to protest to Appeals (the statute requires the notice at least 60 days before assessment). Signing Form 2751 agrees to the assessment.
- What a response has to establish
- A protest on responsibility and willfulness: who had signature authority, who decided which creditors were paid, when the person learned of the delinquency, and what was done about it.
- Authority
- IRC §6672
- Treas. Reg. §301.6672-1
- IRM 5.7.4
- IRM 5.7.6
- IRS Publication 1
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A protest letter structured on the responsible-person and willfulness elements, with the facts and the authority for each.
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