Employers are required to pay employment taxes for their employees. When employers do not pay the required employment taxes directly to the Internal Revenue Service (IRS) or state taxing agency, such as the Comptroller of Maryland, the taxing agency will attempt to collect these funds from the employer and can also collect these funds from responsible individuals who can be personally assessed.

Employment Taxes

The IRS and Comptroller of Maryland can use tax levies, wage garnishments, bank garnishments and tax liens to collect these funds from the business or responsible individuals. In general, neither the Comptroller of Maryland or IRS will make assessments against the responsible individuals if the business is working to resolve the debt issue and if the problem does not continue and the business stays in compliance.

The portion of tax which is assessed against the individual is called the Trust Fund Recovery Penalty (TFRP).  The assessment can sometimes be up to sixty percent (60%) of the original assessment against the business. Once the IRS or Comptroller of Maryland makes this TFRP assessment, the taxing agency can collect against any individual assessed with the TFRP, even if more than one person has been assessed. The IRS or Comptroller of Maryland can also pursue collection against the business and individual simultaneously.

The tax attorneys at Longman & Van Grack regularly work with business to resolve the outstanding tax debts for employment taxes. In addition, Longman & Van Grack will work with the owners or responsible parties to determine who should be assessed with the trust fund recovery penalty and working out a plan to resolve the liability with the IRS or Comptroller of Maryland.

With Offices in Maryland (Rockville or Bethesda), Virginia (Tysons Corner), and Washington, DC, the attorneys at Longman & Van Grack assist clients throughout Washington, DC and Maryland including Montgomery County, Howard County, Prince George's County, Chevy Chase, Darnestown, Gaithersburg, Germantown, Potomac, Silver Spring, and Wheaton. Hiring an attorney is an important decision which should not be based solely on advertising. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.