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Simple English definitions for legal terms

Trust fund recovery penalty (TFRP)

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A quick definition of Trust fund recovery penalty (TFRP):

Trust fund recovery penalty (TFRP): A big fine that the IRS charges to employers who knowingly or intentionally keep the taxes owed by their employees to the IRS. Employers are supposed to keep these taxes in a trust and pay them to the IRS regularly. If an employer uses this money instead of paying it to the IRS, they will be charged a penalty equal to the amount of taxes they withheld. For example, if an employer misused $10,000 of withheld taxes, they would have to pay back the $10,000 plus a $10,000 penalty. The IRS investigates businesses and individuals suspected of wrongdoing and holds them accountable for their actions.

A more thorough explanation:

Trust Fund Recovery Penalty (TFRP) is a fine that the IRS charges to employers who knowingly or willfully withhold 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. The IRS requires this money to be paid on a periodic basis, 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. withholds $10,000 of taxes from their employees' paychecks but uses that money for other purposes instead of submitting it to the IRS, 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.

Overall, the TFRP is a serious penalty that serves as a deterrent for employers who may be tempted to misuse funds that belong to their employees and the government.

trust fund | trust fund taxes

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true i love ur user
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thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
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windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
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try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
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