If an employer willfully fails to file payroll tax, the IRS may exercise their authority to collect by using the Trust Fund Recovery Penalty (TFRP) against them. Once an employer is notified of the IRS' plan to assess the TFRP against them, they have 60 days to pay the tax or appeal. And what's worse, even declaring bankruptcy will not eliminate an employer's requirement to pay the payroll tax.
***Bryson Law Firm, LLC is a Louisiana law firm focusing 100% of our practice on helping people and businesses solve their IRS and Louisiana state tax problems. We have offices in Lafayette, Baton Rouge, and Shreveport.