19:03
Honestly, idk what I would call myself these days. Will probably not know until I can reflect on this part of my life which will be idk, in like 5 years when I am 32.
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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.