10:38
When in southeast Asia be careful of a MILF attack lmfao
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
TFRP
Read a random definition: aggravated robbery
A quick definition of TFRP:
Term: TFRP
Definition: TFRP stands for Trust Fund Recovery Penalty. It's a big fine that the IRS charges to employers who knowingly or willfully keep employee taxes owed to the IRS. Employers are supposed to take taxes out of their employees' paychecks and put them into a trust. The IRS needs this money to be paid regularly. If an employer uses this money instead of paying it to the IRS, they will be charged a penalty equal to the taxes they withheld. For example, if a company misused $10,000 of withheld taxes, they would have to pay back the $10,000 plus a $10,000 penalty. The IRS will investigate a business or individual if they suspect wrongdoing and hold them accountable for their actions.
A more thorough explanation:
TFRP stands for Trust Fund Recovery Penalty. It is a fine that the IRS charges to employers who knowingly or willfully keep employee FICA and income taxes owed to the IRS.
Employers are required to retain taxes owed by an employee to the IRS from their paychecks and submit them into a trust. This money is supposed to be paid on a periodic basis to the IRS, usually quarterly. If a corporation or individual uses this income instead of it remaining in trust, the IRS will give them a trust fund recovery penalty which is equal to the taxes withheld.
For example, if XYZ Co. misused $10,000 of withheld taxes, the company would have to pay back the $10,000 plus a $10,000 penalty. This can add up in an organization with many employees.
The IRS will investigate a business and individuals when it suspects misdealing, and they will try to hold the relevant party accountable, be it an administrator or an employee.
An example of TFRP is when a small business owner withholds taxes from their employees' paychecks but uses the money to pay for personal expenses instead of submitting it to the IRS. If the IRS finds out, they will charge the business owner a TFRP.
Another example is when a large corporation withholds taxes from their employees' paychecks but uses the money to invest in the stock market instead of submitting it to the IRS. If the IRS finds out, they will charge the corporation a TFRP.
These examples illustrate how TFRP is a penalty for employers who misuse the taxes withheld from their employees' paychecks. It is important for employers to submit these taxes to the IRS on time to avoid penalties and legal consequences.