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Abstract: 

As a general rule, employers are required to withhold Social Security, Medicare, and federal income taxes from their employees’ wages. Failure to forward these “trust fund” taxes constitutes a violation of IRC §6672(a) and creates personal liability for the individual actors—commonly known as the trust fund recovery penalty—including any “employee of a corporation, or a member or employee of a partnership who … is under a duty to” remit to the federal government . This article examines the scope of liability under IRC §6672(a) and the protections available to shield volunteer board members from penalties.

Keywords: Failure to forward withholding; IRC §6672(a) Penalties

Affiliations:  1: Clark Hill Strasburger.