Employers who’re responsible for collecting payroll tax and remitting it to the IRS can face a penalty equal to 100% of the unpaid amount if they willfully fail to do so. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against those deemed to be “responsible.” In one case, the owners of four staffing companies didn’t collect or pay more than $1.3 million in payroll taxes due. The IRS Criminal Investigation unit found the owners, who controlled the financial affairs of the companies, were the responsible parties. The owners agreed to make full restitution of the amount owed and could face up to five years in prison and a fine. For more about the TFRP: https://bit.ly/4mYsAiH. Contact the Cg Team with questions. © 2025