We charged you a Trust Fund Recovery Penalty (TFRP) for not paying employment or excise taxes.
What you need to do
- Read your notice carefully — it explains your due date, amount due, and payment options.
- Make your payment by your due date. Go to the payments page to find out more about your payment options.
You may want to
- Download copies of the following materials (if they were not included with your notice):
- Call 1-800-TAX-FORM (1-800-829-3676) to have forms and publications mailed to you.
- Complete and send us a Form 2848, Power of Attorney and Declaration of Representative to authorize someone (such as an accountant) to contact us on your behalf.
Answers to Common Questions
Q. Why was I assessed this penalty?
A. We charged you the Trust Fund Recovery Penalty for willfully failing to collect, account for, or pay over employment (or excise) taxes. Find additional information for Employment Taxes and the Trust Fund Recovery Penalty (TFRP).
Q. What happens if I can't pay the full amount I owe now?
A. See if you may be able to set up a payment plan through our Online Payment Agreement Application.
Q. What happens if I don’t respond to this notice?
A. Interest will continue to be charged until the balance is paid.
Q. Am I charged interest on the money I owe?
A. Not if you pay the full amount you owe by the date on the payment coupon. However, interest adds up on the unpaid amount after that date.
Q. What should I do if I disagree with the notice?
A. If you disagree with the penalty charge you may file a suit for refund. To do so, you must:
- pay the withheld tax for one employee for each quarter of liability you disagree with, and
- file a claim for refund on Form 843, Claim for Refund and Request for Abatement, for the amount paid.
If you want to suspend collection of the penalty while the suit is pending, you must post a bond with the IRS for one and half times the balance.
How to get help
- Call the 800, 866 or 888 number listed on the top right corner of your notice.
- Authorize someone (such as an accountant) to contact the IRS on your behalf using Form 2848, Power of Attorney and Declaration of Representative (PDF)
- See if you qualify for help from a Low Income Taxpayer Clinic.