Celesq® Master Tax Series - Employment Taxes and the Trust Fund Recovery Penalty

In medieval England, the Christian Peter and Paul were two peas in a pod. They were both apostles and both martyred in Rome. They even shared the same feast day (June 29). So, the idea behind the phrase “robbing Peter to pay Paul” is that the victim and payee are similar in wisdom and stature (to borrow a phrase). The modern-day equivalent is taking a cash advance from one credit card to make the minimum payment on another one, assuming that they both have a similar interest rate.

 

In this presentation, I will cover the basics of Form 941 taxes. Form 941 taxes represent the amount of money that an employer must withhold from his or her employees’ wages for remittance to the IRS. This includes social security, Medicare, and income taxes. We'll then discuss the Trust Fund Recovery Penalty. To encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the Trust Fund Recovery Penalty (TFRP). Sec. 6672(a) imposes a penalty on any person who is “responsible” for paying payroll taxes and “willfully” fails to do so.

 

We'll delve into the situations in which the TFRP arises, cover the procedures surrounding it, the defenses, how easy it is for the IRS to prove a case, what happens if your client loses, how the IRS applies TFRP payments, and "tattle tailing" on others.

Live Webcast Timed Agenda:
 

1.      Introduction of Presenter and Overview of Topic (3 minutes)
2.      Liability for Trust Fund Taxes (10 minutes)
3.      Trust fund recovery penalty  (5 minutes)
4.      Trust fund taxes  (10 minutes)
5.      Elements of liability  (10 minutes)
6.      Key element: Control of financial decisions (10 minutes)
7.      Willfulness (10 minutes)
8.  Reasonable cause  (10 minutes)
9.      Exceptions for unpaid volunteers to charities  (10 minutes)
10.      Administrative procedures  (10 minutes)
11.      Audits and appeals  (10 minutes)
12.      Assessments (10 minutes)
13.  Statute of Limitations  (5 minutes)
14.  IRS Policy to collect only once  (5 minutes)
15.      Collection due process  (5 minutes)
16.   Bankruptcy and the TFRP  (5 minutes)
17.   Planning for the TFRP  (5 minutes)
18.   Contribution among responsible persons   (5 minutes)
19.  

Michael DeBlis, III is a partner in the boutique law firm of DeBlis Law where he specializes in tax compliance and entertainment law. Michael graduated from Western Michigan University School of Law in 2007 and later went on to earn his Masters of Law in taxation (LL.M.) from Thomas Jefferson School of Law in 2012.
 
As a former public defender, Michael has spent nearly eight years cutting his teeth on some of the most serious felony cases to pass through the state courts of New Jersey.
 
Michael’s unique background in tax law puts him into an elite category of criminal defense attorneys who specialize in criminal tax defense. His extensive trial experience and solid grounding in all major areas of federal taxation make him uniquely qualified to handle any white-collar case, no matter how sophisticated it might be.
 
Michael is known for his creativity, his charismatic personality, and his unyielding dedication to his clients. As a graduate of the National Criminal Defense College, Michael has trained under some of the best-known criminal defense attorneys in the country. That experience has taught him that justice for a person accused of a crime is only won through a full understanding of the client and the case. To that end, Michael attempts to understand each client’s case as a convincing narrative, not just as a set of innocuous facts and arcane legal rules.
 
When he's not in the courtroom, you can find Michael on stage. As a professionally trained actor, Michael's passionate about helping trial lawyers harness the power of persuasion and positive communication in the courtroom in order to connect to the jury on a human level.
 
Michael's training as an actor allows him to combine a unique blend of left-brain thinking with right brain artistry to make even the most dull and abstract areas of the law come to life. This burst of creativity has contributed to Michael's success as a distinguished author and sought-out speaker.
 
Michael has written articles that have been published in leading tax journals, such as "CCH Journal of Tax Practice and Procedure," "EA Journal," "Global Tax Weekly," and "ABA News Quarterly" and is a columnist for "Law360." He has been featured on the media affiliates of several major media networks, including NBC, ABC, CBS, Fox, and CNN.
 
Michael is a living example of the tremendous power that comes from combining passion, preparation, persuasion, and positive communication in the courtroom. His courage and relentless work ethic have earned him a reputation as a zealous advocate and one of New Jersey's rising stars of the legal profession.