Trust Fund Recovery Penalty (TFRP)

Definition of "Trust Fund Recovery Penalty (TFRP)"
  1. 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
How to use "Trust Fund Recovery Penalty (TFRP)" in a sentence
  1. The TFRP was imposed on the company for not remitting the deducted taxes to the IRS.
  2. As the CFO, I bear the risk of TFRP if our company doesn't pay withholding taxes.
  3. Our accountant always ensures compliance with tax payments to avoid the TFRP.

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