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2012 4.9 Satisfied (426 Votes)
2007 4.2 Satisfied (45 Votes)
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Generally, any trust with at least $600 in annual income must file a federal return. But for a revocable trust or a grantor trust thats controlled by the person who set it up, those owners must include the trust on personal returns, and the trust itself doesnt file.
If the IRS requests a 4180 interview, the best way to get out of it is to pay the bill and cancel the interview. You can also admit to liability by signing Form 2751 (Proposed Assessment of Trust Fund Recovery Penalty) and then attempt to set up payments or apply for a settlement.
If you are a person responsible for withholding, accounting for, or depositing or paying specified taxes including NRA withholding and employment taxes, and willfully fail to do so, you can be held personally liable for a penalty equal to the full amount of the unpaid trust fund tax, plus interest.
Trust Fund Recovery Penalty Statute of Limitations IfThen the limitations period for assessment is: Withholding or Federal Insurance Contribution Act (FICA), Three years from the succeeding April 15th or three years from the date return was filed; whichever is later.2 more rows
The Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes, is used by Revenue Officers to obtain information pertinent to who might be responsible and willful for the non-payment of the trust fund taxes.
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People also ask

Figuring the TFRP amount The penalty is computed based on: The unpaid income taxes withheld, plus. The employees portion of the withheld FICA taxes.

irs form 2749