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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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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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