Form 4180: Challenge the TFRP
The IRS says you're personally liable for your company's unpaid payroll taxes. Form 4180 is the Revenue Officer's interview questionnaire — and it's your chance to prove you weren't responsible, didn't act willfully, and shouldn't be hit with the Trust Fund Recovery Penalty. What you say in this interview determines whether the penalty sticks.
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Get Your Free Tax Relief Review
A specialist will review your case and outline your options — completely free.
Form 4180 — The RO's Key Questions
Did you have authority to sign checks?
If you could sign checks — even if you delegated that duty — the RO may find you had the authority to pay the trust fund taxes. The question is: did you have the power, not whether you exercised it.
Did you determine financial policy for the business?
Setting payment priorities is a responsibility indicator. If you decided which creditors got paid and when — especially if you paid suppliers before the IRS — the RO will likely find you responsible.
Did you participate in day-to-day management?
Active involvement in business operations — hiring, firing, setting pay, approving expenses — supports a finding of responsibility. Passive investors or silent directors have a stronger defense.
Did you know the payroll taxes were not being paid?
This goes to willfulness. If you knew the taxes were due and unpaid and continued paying other creditors, the RO will find willfulness. A defense: you were unaware, your authority was limited, or you were directed by a superior.
Did you have an ownership interest?
Ownership percentage matters but is not dispositive. A 10% owner with full check-signing and management authority can be held responsible. Conversely, a 100% passive owner with a professional manager may not be.
Don't Face the RO Interview Alone
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