Trust Fund Recovery Penalty – What Oklahoma Business Owners Need to Know
If your Oklahoma business owes unpaid payroll taxes, the IRS may come after you personally — not just the company.
Through a powerful enforcement tool called the Trust Fund Recovery Penalty (TFRP), the IRS can hold business owners, officers, managers, and even bookkeepers personally liable for unpaid employment taxes.
At Boulanger CPA and Consulting PC, we help Oklahoma business owners fight back against wrongful TFRP assessments and protect their personal finances and reputation.
What Is the Trust Fund Recovery Penalty?
When your business withholds:
- Federal income tax
- Social Security and Medicare taxes (FICA)
...you are holding those funds “in trust” for the IRS. If they are not deposited, the IRS considers it a misuse of employee funds — and may assess the TFRP against individuals responsible for the failure to pay.
You may be assessed personally if the IRS determines that you:
- Were responsible for collecting and submitting the taxes
- Willfully failed to do so
Who Can Be Held Personally Liable?
TFRP is not limited to owners. Anyone with authority over financial decisions may be targeted, including:
- Owners and partners
- Corporate officers (CEO, CFO, President, etc.)
- Bookkeepers or payroll staff
- Accountants with signature or approval authority
- Anyone who signed checks or decided who got paid
What Triggers a TFRP Investigation?
TFRP investigations are usually triggered when:
- You owe Form 941 payroll tax
- The business stops making federal tax deposits
- A Revenue Officer has been assigned to your case
- You receive IRS Letter 1153 and Form 2751
- IRS staff begin interviewing employees and officers
Once Letter 1153 is sent, you have 60 days to appeal. Don’t wait. Understand how unpaid payroll taxes escalate with the IRS.
Oklahoma Case Example
Client: Food services company partner in Oklahoma City
- Business failed to deposit $62,000 in payroll taxes
- IRS initiated TFRP investigation
- Client was no longer managing day-to-day finances
- We filed a protest and supplied documentation
- IRS dropped the proposed assessment — no personal liability
How to Fight or Reduce the TFRP
1. Challenge Responsibility or Willfulness
We help prove you had no financial control or decision-making authority.
2. Appeal the Assessment (Letter 1153)
You have 60 days to file a written protest — we handle this process for you.
3. Negotiate Resolution Options
If the TFRP is valid but unaffordable, we may pursue:
- An Offer in Compromise
- Currently Not Collectible (CNC) status
- Installment plan based on financial hardship
4. Prevent Future Payroll Liability
We help restructure operations and keep your current 941 deposits compliant.
Learn More: Here's how to properly complete IRS Form 433-B.
Why Work With Boulanger CPA?
- ✅ Based in Oklahoma — experienced with TFRP defense
- ✅ CPA-led representation with payroll tax expertise
- ✅ We file Power of Attorney, review transcripts, and deal with IRS directly
- ✅ We protect both the business and individual stakeholders
- ✅ Flat-fee pricing — no billing surprises
Explore your state-level risks if you also owe the OTC.
Don’t Face the IRS Alone
If you’ve received Letter 1153 or have payroll tax debt, we can help defend you and resolve the matter — fast.
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Call (405) 384-4900
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Schedule a Free Strategy Call
🧠 FAQ – Trust Fund Recovery Penalty
Can the IRS really come after me personally for business taxes?
Yes — if the taxes are trust fund (withholding) taxes and the IRS believes you were responsible and willful in not paying them.
What if I didn’t own the business?
Ownership is not required. If you had signature authority or financial control, the IRS may still assess the TFRP against you.
Can the penalty be removed?
Yes — through protest, appeal, or settlement. We can often challenge the assessment or reduce what you owe based on your financials.
Will this show up on my credit?
Not directly, but if the IRS files a tax lien related to the TFRP, it may appear on public records or affect financing applications.
✍️ About the Author
Marc Boulanger, CPA, is the founder of Boulanger CPA and Consulting PC, a CPA firm based in Oklahoma City, OK.
Marc is the author of Oklahoma Taxpayers' Guide: Taking a Stand Against the IRS and has resolved hundreds of complex federal and state tax cases.
With over a decade of experience in IRS and OTC representation, Marc helps Oklahomans navigate high-stakes tax problems with clear strategy and calm expertise.
He is a Certified Tax Representation Consultant and a member of the American Society of Tax Problem Solvers (ASTPS).
📍 Office: Oklahoma City, OK | 📞 (405) 384-4900 | 🌐 www.oklahomacity.cpa
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