A Tax Court decision was affirmed dealing with IRS Trust Fund Recovery Penalty Approval. J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients.
The IRS trust fund recovery penalty (TFRP) is a penalty approval within the meaning of Code Sec. 6751(b)(1) and is thus subject to the requirement that written supervisory approval be secured for the initial determination of assessment of such a penalty against a taxpayer. In the instant case, the IRS satisfied the requirements of Code Sec. 6751(b)(1) because written supervisory approval of the TFRPs assessed against a taxpayer who failed to pay employment taxes was secured on two Forms 4183, Recommendation re: Trust Fund Recovery Penalty Assessment, recommending assertions of the TFRPs against the taxpayer on the same date two respective Letters 1153, Trust Fund Recovery Penalty Letter, were mailed to the taxpayer. Chadwick v. Comm’r, 154 T.C. No. 5 (2020).