Employers who withhold but willfully fail to remit payroll taxes to the IRS can face a penalty equal to 100% of the unpaid amount. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against individuals deemed “responsible.” In one case, a chairperson and board member of a school was found to have willfully failed to pay over $187,900 in payroll taxes. He argued that he believed the taxes had been paid. But multiple emails showed he was aware of IRS collection efforts. The U.S. 9th Circuit Court of Appeals ruled that his failure to pay was willful and upheld the TFRP. (Dreyer, 3/28/25) For more about the TFRP and how the IRS determines willfulness: https://bit.ly/3YiUE6V
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