Trust Fund Recovery Penalty (TFRP)
- An IRS penalty applied when a business fails to pay the taxes it deducted from an employee's paycheck, such as Social Security, Medicare, and federal income taxes
- The TFRP was imposed on the company for not remitting the deducted taxes to the IRS.
- As the CFO, I bear the risk of TFRP if our company doesn't pay withholding taxes.
- Our accountant always ensures compliance with tax payments to avoid the TFRP.
Provide Feedback
