Resolving Your Client’s Payroll Tax Nightmare Presented by
Eric L. Green, Esq. Green & Sklarz LLC 700 State Street, Suite 304 New Haven, CT 06511 Ph. (203) 285-8545 Fax (203) 286-1311 www.gs-lawfirm.com
New Haven ● Stamford ● New York
ERIC L. GREEN, ESQ. The focus of Attorney Eric L. Green’s practice is civil and criminal taxpayer representation before the Department of Justice Tax Division, Internal Revenue Service and Connecticut Department of Revenue Services, as well as handling probate matters and estate planning for individuals and business owners and tax planning for closely held businesses. He is a frequent lecturer on tax topics for CCH, the NAEA, the ABA Tax Section and the Connecticut Society of CPAs. Attorney Green has served as adjunct faculty at the University of Connecticut School of Law. He is the author and lecturer of the CCH IRS Representation Certificate Program, and he is a columnist for CCH’s Journal of Practice & Procedure. Mr. Green is a contributing author for Advocating for Low Income Taxpayers: A Clinical Studies Casebook, 3rd Edition, and has also been quoted in USA Today, Consumer Reports and CreditCard.com.
Attorney Green is also a Certified Internal Auditor, and prior to practicing law, served as a senior tax consultant for national and international accounting firms, including KPMG and Deloitte & Touche.
Attorney Green is a 2010 Nolan Fellow of the American Bar Association and currently serves as Chair of the American Bar Association’s Closely Held Businesses Tax Committee, and in the past has served as the chairman of the subcommittees on Business Succession Planning and Estate Planning. Attorney Green is the Chair of the Executive Committee of the Connecticut Bar Association’s Tax Section.
Attorney Green is admitted to practice in Connecticut and Massachusetts and is a member of the United States Tax Court Bar. Attorney Green is also a member of the Connecticut and Massachusetts Bar Associations, as well as the American Bar Association. Attorney Green is admitted to practice in Massachusetts and Connecticut Superior Courts, the United States Tax Court, and the Federal District Court for Connecticut. Attorney Green received his Bachelor of Business Administration degree in Accounting with a minor in International Business from Hofstra University and is an honors graduate from New England School of Law. He earned a Masters of Laws in Taxation (LL.M.) from Boston University School of Law. Green & Sklarz LLC, 700 State Street, Suite 304, New Haven, CT 06511 Ph. (203) 285-8545, Fax (203) 286-1311
[email protected]
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Agenda
Ending Your Client’s Payroll Tax Nightmare Eric L. Green, Esq.
• Payroll Tax Basics • IRC § 6672 • What are “Trust Funds” • Who is a “Responsible Person”
• IRC § 3505 • Assessment • Strategies • Criminal Aspects of Employment Taxes
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Payroll Tax Basics
Enforcement
• 2 sides of payroll taxes: the fiduciary portion and the employer’s share • The fiduciary portion includes the income tax withheld, and the FICA taxes withheld (social security and Medicare) from the employee’s pay • Referred to as “Trust Funds”
IRC § 6672
• IRS has become much more aggressive • Part of the tax gap • TFRP is now mandatory • Upswing in criminal employment tax prosecutions
What are “Trust Funds”
IRC § 6672 allows the Internal Revenue Service to recover “trust funds” withheld from employee’s pay from “any person required to collect, truthfully account for, and pay over any tax imposed” and “who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof”
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• Federal income tax withheld • 6.2% social security withheld from employees • 1.45% Medicare withheld from employees
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What “Trust Funds” are not • Employer’s match of the social security and Medicare taxes • Federal unemployment
Trust Funds • The employer is deemed to be holding these funds in trust for the U.S. Government • The penalty is a 100% penalty
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Who is Responsible?
8
Who is Responsible? • The term “responsible person” is broad • Encompassing anyone responsible for collecting, accounting and paying over taxes to the government • Responsibility is a matter of status, duty, and authority • Functional Test
• Sole Proprietors • Partners • Bookkeepers • Lenders/creditors • Accounting firms • Parent companies • Purchasing companies
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Indicators of Responsibility
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Responsibility • The IRS can pursue any or all responsible persons • Anyone responsible is joint and severally liable for the tax • They each have a right of contribution from the other responsible parties
• Holding corporate office • Ownership • Authority in the bylaws • Hiring and firing authority • Check signing authority • The authority to sign and file payroll returns
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Responsibility
Check Signing Authority
• IRC § 6103(e)(9) allows the IRS to disclose to anyone determined to be a responsible person who else is responsible, what collection action was taken and how much the IRS collected. • There is no requirement to collect from the employer first!
• Check signing authority alone is not sufficient to establish responsible person status • Mechanical • Convenience
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IRC § 3505
14
Willfulness
• Third party lenders may become responsible for the trust fund taxes if they loaned money to cover net payroll • Must have actual notice or • Liability is limited to 25% of the funds supplied
• Person was or should have been aware of the outstanding taxes and either intentionally disregarded the law or was indifferent to the consequences • Insufficient funds is not a defense • Obeying a superiors orders is not a defense – See Hochstein v. United States
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Willfulness
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Willfulness
• Must have been responsible at the time to be liable • See In Re Slodov
• Where a responsible person finds out after the fact and continues to pay other creditors in preference to paying the back taxes would constitute a willful failure to pay the delinquent taxes – see Purcell v. US and Honey v. US • They would be a responsible person to the extent the unencumbered funds were used to pay other creditors instead of the back taxes
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SMLLC
Assessment
• The IRS finalized the formerly proposed regulations on August 15, 2007 • Starting January 1, 2009, a SMLLC will be treated as a corporation for purposes of employment taxes
• The IRS Revenue Officer will seek interviews from all potential responsible people they can locate • Interview form 4180 • Assess all responsible persons – letter 1153 • Form 2751 to waive
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Assessment
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Strategy – Not Responsible
• Once assessed, the individual assessed against will have 60 days to file their protest and obtain an appeals hearing • The taxpayer and/or their representative should seek to obtain copies of the interview forms
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Strategy – Close the Company • Cease operating • Liquidate the entity • Reduce the liability to TFRP • Issues of the assets • Tax Liens • Alter‐Ego issues
• Obtain copies of the interview forms • Obtain copies of cancelled checks • Interview former employees
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Strategy – Designate the Payment • Designate voluntary payments • Revenue procedure 2002‐26 • Use to the taxpayer’s advantage – TFRP • Deferred payment offers can be applied against the TFRP until the Offer is accepted
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Criminal Employment Tax Prosecutions • Background: • Direct – employers taxes: a. Federal Unemployment Tax (FUTA) b. Employer’s share of the employee’s social security and Medicare (FICA)
Criminal Employment Tax Prosecutions Fiduciary – withheld taxes • Employee’s share of Social Security and Medicare (FICA) • Employee’s income tax withholding
Criminal Employment Tax Prosecutions
Criminal Employment Tax Prosecutions
• Different than IRC Sections 6672 or 3505 • IRC Section 7202 makes it a felony for the willful failure to collect, account for and pay over the employment taxes
• Primary criminal statutes: • Willful failure to collect or pay over tax (26 U.S.C. Section 7202) – felony statute • Offenses with respect to collected taxes (26 U.S.C. Section 7215) – misdemeanor statute
Criminal Employment Tax Prosecutions
Criminal Employment Tax Prosecutions
Other Charging Options may include the following • False Subscription (26 U.S.C. Section 7206(1)) • Tax Evasion (26 U.S.C. Section 7201) • Conspiracy (18 U.S.C. section 371)
• The duty falls on the employer - duty is nondelegable • Section 7202 duties to withhold, account for, and pay over are inseparable: the breach of any one is an offense.
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True or False Over the course of its entire history, the IRS has never had a less than 90% conviction rate for those criminal tax cases referred for prosecution and taken to trial?
True!
Criminal Employment Tax Prosecutions
Key Factors to Prosecute
• IRC § 7202 does not require proof of an affirmative/overt act - paying other creditors instead of the IRS establishes willfulness. • Applies only to fiduciary taxes - however the employer’s portion may be charged as tax evasion under IRC § 7201 or treated as relevant conduct for sentencing.
• Recidivism: opening a series of companies that fail to pay • Personal benefit reaped by the owner/operator/responsible party • Toys: planes, boats, exotic autos • Claiming benefits on personal returns
Penalties
Recent Cases
The penalties for violation of IRC § 7202 pursuant to 18 USC § 3571 are: • Fines up to $250,000 ($500,000 for corporations) per violation • Incarceration up to 5 years • Cost of prosecution
• Jerry Carter, Jr. ‐ First Priority Pay • Jose Figueroa and Carlos Chorro – First Priority Pay • Woody Schaub
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Questions?
7
Summons In the matter of Internal Revenue Service (Division): Industry/Area (name or number): Periods:
The Commissioner of Internal Revenue To: At: You are hereby summoned and required to appear before , an officer of the Internal Revenue Service, to give testimony and to bring with you and to produce for examination the following books, records, papers, and other data relating to the tax liability or the collection of the tax liability or for the purpose of inquiring into any offense connected with the administration or enforcement of the internal revenue laws concerning the person identified above for the periods shown.
Do not write in this space
Business address and telephone number of IRS officer before whom you are to appear:
Place and time for appearance at
IRS
on the
day of
,
at
o'clock
m.
Issued under authority of the Internal Revenue Code this
day of
,
Department of the Treasury Internal Revenue Service
www.irs.gov Signature of Issuing Officer
Form 2039(Rev. 10-2010) Catalog Number 21405J
Title
__________________________________________ Signature of Approving Officer (if applicable)
Title
Original
-- to be kept by IRS
Service of Summons, Notice and Recordkeeper Certificates (Pursuant to section 7603, Internal Revenue Code)
I certify that I served the summons shown on the front of this form on: Date
How Summons Was Served
Time
1.
I certify that I handed a copy of the summons, which contained the attestation required by § 7603, to the person to whom it was directed.
2.
I certify that I left a copy of the summons, which contained the attestation required by § 7603, at the last and usual place of abode of the person to whom it was directed. I left the copy with the following person (if any):____________________________________ I certify that I sent a copy of the summons, which contained the attestation required by § 7603, by certified or registered mail to the last known address of the person to whom it was directed, that person being a third-party recordkeeper within the meaning of § 7603(b). I sent the summons to the following address:
3.
Signature
Title
4. This certificate is made to show compliance with IRC Section 7609. This certificate does not apply to summonses served on any officer or employee of the person to whose liability the summons relates nor to summonses in aid of collection, to determine the identity of a person having a numbered account or similar arrangement, or to determine
whether or not records of the business transactions or affairs of an identified person have been made or kept. I certify that, within 3 days of serving the summons, I gave notice (Part D of Form 2039) to the person named below on the date and in the manner indicated.
Date of giving Notice:
Time:
Name of Noticee: Address of Noticee (if mailed):
How Notice Was Given
I gave notice by certified or registered mail to the last known address of the noticee. I left the notice at the last and usual place of abode of the noticee. I left the copy with the following person (if any).
I gave notice by handing it to the noticee. In the absence of a last known address of the noticee, I left the notice with the person summonsed. No notice is required.
Signature
Title
I certify that the period prescribed for beginning a proceeding to quash this summons has expired and that no such proceeding was instituted or that the noticee consents to the examination. Signature
Title
Form 2039 (Rev. 10-2010)
Interview Handouts
Instructions
Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes
(''X'' if given or explain why not in case history.)
The interviewer must prepare this form either in person or via telephone. Do not leave any information blank. Enter ''N/A'' if an item is not applicable.
Notice 609, Privacy Act Notice Notice 784, Could You be Personally
Liable for Certain Unpaid Federal Taxes?
to
IRC 6672, Failure to collect and pay over tax from (mmddyyyy)
Type of Interview ("x" one.)
to
IRC 4103, Failure to pay excise taxes from (mmddyyyy)
Background Information for Person Interviewed
Section I. 1. Name
2. Social Security Number (SSN)
3. Address (Street, City, State, ZIP code)
4. Home telephone number
(
)
5. Work telephone number
(
)
6. What was your job title and how were you associated with the business? (Describe your duties and responsibilities and dates of employment.) 7. Did you resign from your position? a. When?
No
Yes Yes
b. Is a copy available?
c. To whom was it submitted?
8. Do/Did you have any money 9. If you were listed on the company's invested in the business? bank signature cards, did you have your name removed from them? No Yes No N/A No Yes When?
10. Were financial statements prepared for the business? Yes If yes, who reviewed them and where are the No statements located?
11. Have you ever been involved in another business that had tax problems? Yes If so, provide name of business and dates. No
Background Information for Business Entity
Section II.
(Complete shaded items only if this is the first Form 4180 secured on the business entity.)
1. Name of Business and Employer Identification Number (EIN)
2. Business telephone number
( 3. Address (Street, City, State, ZIP code)
4. Has the business ever filed bankruptcy?
5. Type of Entity
Yes
Chapter: Petition #
Disregarded Entity
State where incorporated
Taxed as a Partnership
Has the state ever revoked the charter? No
Date Filed:
How is the LLC treated for tax purposes?
Date incorporated
Sole Proprietor
No
Limited Liability Company (LLC)
Corporation
Partnership
)
Yes
When?
Taxed as a Corporation Has the LLC made any recent election for reclassification? Yes
If Yes, explain
No 6. Is the business still operating? Yes
No
7. Was any property of the business sold, transferred, quit-claimed, donated, or otherwise disposed of, for less than full value?
When did it stop operating?
No
Yes (Provide explanation.)
What happened to the assets? 8. Which banks or financial institutions did the business use for transactions such as checking, savings, loans, financing agreements, etc.? Name
Form 4180 (Rev. 7-2007) Catalog No. 22710P
Address
Page 1 of 4
www.irs.gov
Types of Transactions
Dates
Department of the Treasury – Internal Revenue Service
Background Information for Business Entity
Section II. — continued
9. Please list corporate positions below, identifying the persons who occupied them and their dates of service. Position (e.g. President, Director)
Name
Address
10. Does the business use the Electronic Federal Tax Payment System (EFTPS) to make Federal Tax Deposits (FTDs) or payments? No Yes
Dates
11. Other than the EFTPS, does the business do any other banking electronically? No
Yes
Where?
To whom are the PINs or passwords assigned?
To whom are the PINs/passwords assigned?
Who authorized the assignment of EFTPS PINs/passwords?
Who authorizes changes to the PINs/passwords?
(If more than one, list dates.)
12. Does the business file Form 941 electronically? No
Yes
Who is authorized to sign Form 941?
13. Does/did the business ever use a Payroll Service Provider (PSP) or Professional Employer Organization (PEO) for making deposits and/or file returns?
No
Yes
If yes, identify the PSP or PEO.
Who signed the contract?
Section III.
Responsibility
1. Please state whether you performed any of the duties / functions listed below for the business and the time periods during which you performed these duties. Please also provide the names and time periods that any other person performed these duties. Dates Dates Did you... Yes No Who else performed this duty? From To From To a. Determine financial policy for the business? b. Direct or authorize payments of bills/ creditors? c. Open or close bank accounts for the business? d. Guarantee or co-sign loans? e. Sign or counter-sign checks? f. Authorize payroll? g. Authorize or make Federal Tax Deposits? h. Prepare, review, sign, transmit payroll tax returns? i. Hire/Fire? Form 4180 (Rev. 7-2007) Catalog No. 22710P
Page 2 of 4
www.irs.gov
Department of the Treasury – Internal Revenue Service
Section IV.
Knowledge / Willfulness
1. When and how did you first become aware of the delinquent taxes?
2. What actions did you take to see that the taxes were paid?
3. Were discussions ever held by stockholders, officers, or other interested parties regarding nonpayment of the taxes?
4. Who handled IRS contacts such as phone calls, correspondence, or visits by IRS personnel?
No
Yes
Identify who attended, dates, any decisions reached, and
whether any documentation is available.
When did these contacts take place, and what were the
results of these contacts?
5. During the time the delinquent taxes were increasing, or at any time thereafter, were any financial obligations of the business paid? No
Yes
Which obligations were paid?
Who authorized them to be paid?
6. Were all or a portion of the payrolls met? No
7. Did any person or organization provide funds to pay net corporate payroll? No
Yes
Yes (Explain in detail)
8. Other than those previously listed, please provide the name, address, and telephone number of anyone else who may have additional knowledge about or control over the company's financial affairs.
Name
Address
)
(
)
(
)
(Complete only if Business is required to file Excise Tax Returns)
1. Are you aware of any required excise tax returns which have not been filed?
2. With respect to excise taxes, were the patrons or customers informed that the tax was included in the sales price?
Yes (List periods)
No
3. If the liability is one of the ''collected'' taxes (transportation of persons or property and communications), was the tax collected? No
(
Personal Liability for Excise Tax Cases
Section V.
No
Telephone Number
4. Were you aware, during the period tax accrued, that the law required collection of the tax?
Yes
No
Section VI.
Yes
Yes
Signatures
I declare that I have examined the information given in this interview and to the best of my knowledge and belief, it is true, correct, and complete.
Signature of person interviewed
Date
Signature of Interviewer
Date
Date copy of completed interview form given to person interviewed Form 4180 (Rev. 7-2007) Catalog No. 22710P
Page 3 of 4
www.irs.gov
Department of the Treasury – Internal Revenue Service
Additional Information
Form 4180 (Rev. 7-2007) Catalog No. 22710P
Page 4 of 4
www.irs.gov
Department of the Treasury – Internal Revenue Service
Internal Revenue Service
Date:
Department of the Treasury
Number of this Letter: Person to Contact: Employee Number: IRS Contact Address: IRS Telephone Number: Employer Identification Number: Business Name and Address:
Dear Our efforts to collect the federal employment or excise taxes due from the business named above have not resulted in full payment of the liability. We therefore propose to assess a penalty against you as a person required to collect, account for, and pay over withhold taxes for the above business. Under the provisions of Internal Revenue Code section 6672, individuals who were required to collect, account for, and pay over these taxes for the business may be personally liable for a penalty if the business doesn't pay the taxes. These taxes, described in the enclosed Form 2751, consist of employment taxes you withheld (or should have withheld) from the employees' wages (and didn't pay) or excise taxes you collected (or should have collected) from patrons (and didn't pay), and are commonly referred to as "trust fund taxes." The penalty we propose to assess against you is a personal liability called the Trust Fund Recovery Penalty. It is equal to the unpaid trust fund taxes which the business still owes the government. If you agree with this penalty for each tax period shown, please sign Part 1 of the enclosed Form 2751 and return it to us in the enclosed envelope. If you don't agree, have additional information to support your case, and wish to try to resolve the matter informally, contact the person named at the top of this letter within ten days from the date of this letter. You also have the right to appeal or protest this action. To preserve your appeal rights you need to mail us your written appeal within 60 days from the date of this letter (75 days if this letter is addressed to you outside the United States). The instructions below explain how to make the request.
Letter 1153 (DO) (Rev. 3-2002) Catalog Number: 40545C
APPEALS You may appeal your case to the local Appeals Office. Send your written appeal to the attention of the Person to Contact at the address shown at the top of this letter. The dollar amount of the proposed liability for each specific tax period you are protesting affects the form your appeal should take. For each period you are protesting, if the proposed penalty amount is:
You should:
$25,000 or less
Send a letter listing the issues you disagree with and explain why you disagree. (Small Case Request).
More than $25,000
Submit a formal Written Protest.
One protest will suffice for all the periods listed on the enclosed Form 2751, however if any one of those periods is more than $25,000, a formal protest must be filed. Include any additional information that you want the Settlement Officer/Appeals Officer to consider. You may still appeal without additional information, but including it at this stage will help us to process your request promptly. A SMALL CASE REQUEST should include: 1. A copy of this letter, or your name, address, social security number, and any information that will help us locate your file; 2. A statement that you want an Appeal's conference; 3. A list of the issues you disagree with and an explanation of why you disagree. Usually, penalty cases like this one involve issues of responsibility and willfulness. Willfulness means that an action was intentional, deliberate or voluntary and not an accident or mistake. Therefore, your statement should include a clear explanation of your duties and responsibilities; and specifically, your duty and authority to collect, account for, and pay the trust fund taxes. Should you disagree with how we calculated the penalty, your statement should identify the dates and amounts of payments that you believe we didn't consider and or/ any computation errors that you believe we made. Please submit two copies of your Small Case Request. A formal WRITTEN PROTEST should include the items below. Pay particular attention to item 6 and the note that follows it.
Letter 1153 (DO) (Rev. 3-2002) Catalog Number: 40545C
1. Your name, address, and social security number; 2
A statement that you want a conference;
3
A copy of this letter, or the date and number of this letter;
4.
The tax periods involved (see Form 2751);
5
A list of the findings you disagree with;
6
A statement of fact, signed under penalties of perjury, that explains why you disagree and why you believe you shouldn't be charged with the penalty. Include specific dates, names, amounts, and locations which support your position. Usually, penalty cases like this one involve issues of responsibility and willfulness. Willfulness means that an action was intentional, deliberate or voluntary and not an accident or mistake. Therefore, your statement should include a clear explanation of your duties and responsibilities; and specifically, your duty and authority to collect, account for, and pay the trust fund taxes. Should you disagree with how we calculated the penalty, your statement should identify the dates and amounts of payments that you believe we didn't consider and/or any computation errors you believe we made; NOTE: To declare that the statement in item 6 is true under penalties of perjury, you must add the following to your statement and sign it: "Under penalties of perjury, I declare that I have examined the facts presented in this statement and any accompanying information, and, to the best of my knowledge and belief, they are true, correct, and complete."
7. If you rely on a law or other authority to support your arguments, explain what it is and how it applies. REPRESENTATION You may represent yourself at your conference or have someone who is qualified to practice before the Internal Revenue Service represent you. This may be your attorney, a certified public accountant, or another individual enrolled to practice before the IRS. If your representative attends a conference without you, he or she must file a power of attorney or tax information authorization before receiving or inspecting confidential tax information. Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, may be used for this purpose. Both forms are available from any IRS office. A properly written power of attorney or authorization is acceptable.
Letter 1153 (DO) (Rev. 3-2002) Catalog Number: 40545C
If your representative prepares and signs the protest for you, he or she must substitute a declaration stating: 1. That he or she submitted the protest and accompanying documents, and 2. Whether he or she knows personally that the facts stated in the protest and accompanying documents are true and correct. CLAIMS FOR REFUND AND CONSIDERATION BY THE COURTS CONSIDERATION BY THE COURTS If you and the IRS still disagree after your conference, we will send you a bill. However, by following the procedures outlined below, you may take your case to the United States Court of Federal Claims or to your United States District Court. These courts have no connection with the IRS. Before you can file a claim with these courts, you must pay a portion of the tax liability and file a claim for refund with the IRS, as described below. SPECIAL BOND TO DELAY IRS COLLECTION ACTIONS FOR ANY PERIOD AS SOON AS A CLAIM FOR REFUND IS FILED To request a delay in collection of the penalty by the IRS for any period as soon as you file a claim for refund for that period, you must do the following within 30 days of the date of the official notice of assessment and demand (the first bill) for that period: 1. Pay the tax for one employee for each period (quarter) of liability that you wish to contest, if we've based the amount of the penalty on unpaid employment taxes; or pay the tax for one transaction for each period that you wish to contest, if we've based the amount of the penalty on unpaid excise tax. 2. File a claim for a refund of the amount(s) you paid using Form(s) 843, Claim for Refund and Request for Abatement. 3. Post a bond with the IRS for one and one half times the amount of the penalty that is left after you have made the payment in Item 1. If the IRS denies your claim when you have posted this bond, you then have 30 days to file suit in your United States District Court or the United States Court of Federal Claims before the IRS may apply the bond to your trust fund recovery penalty and the interest accruing on this debt.
Letter 1153 (DO) (Rev. 3-2002) Catalog Number: 40545C
CLAIM FOR REFUND WITH NO SPECIAL BOND If you do not file a special bond with a prompt claim for refund, as described above, you may still file a claim for refund following above action items 1 and 2, except these action items do not have to be taken in the first 30 days after the date of the official notice of assessment and demand for the period. If IRS has not acted on your claim within 6 months from the date you filed it, you can file a suit for refund. You can also file a suit for refund within 2 years after IRS has disallowed your claim. You should be aware that if IRS finds that the collection of this penalty is in jeopardy, we may take immediate action to collect it without regard to the 60-day period for submitting a protest mentioned above. For further information about filing a suit you may contact the Clerk of your District Court or the Clerk of the United States Court of Federal Claims, 717 Madison Place, NW, Washington, D.C. 20005. If we do not hear from you within 60 days from the date of this letter (or 75 days if this letter is addressed to you outside the United States), we will assess the penalty and begin collection action.
Sincerely yours,
Revenue Officer
Enclosures: Form 2751 Publication 1 Envelope
Letter 1153 (DO) (Rev. 3-2002) Catalog Number: 40545C
Department of the Treasury -- Internal Revenue Service Form 2751
Proposed Assessment of Trust Fund Recovery Penalty
(Rev. 7-2002)
(Sec. 6672, Internal Revenue Code, or corresponding provisions of prior internal revenue laws)
Report of Business Taxpayer’s Unpaid Tax Liability Name and address of business
Tax Return Form Number
Tax Period Ended
Date Return Filed
Date Tax Assessed
Identifying Number
Amount Outstanding
Penalty
Agreement to Assessment and Collection of Trust Fund Recovery Penalty Name, address, and social security number of person responsible
I consent to the assessment and collection of the penalty shown for each period, which is equal either to the amount of federal employment taxes withheld from employees' wages or to the amount of federal excise taxes collected from patrons or members, and which was not paid over to the Government by the business named above. I waive the 60-day restriction on notice and demand set forth in Internal Revenue Code Section 6672(b). Signature of person responsible
Part 1 - Please sign and return this copy to Internal Revenue Service
Date
Catalog No. 21955U
Form 2751 (Rev. 7-2002)
November 1, 2011
§2T4.1
GUIDELINES MANUAL
concealment of an offense. Conduct such as hiding assets or transactions, or both, through the use of fictitious entities, corporate shells, or offshore financial accounts ordinarily indicates sophisticated means. Historical Note: Effective November 1, 1987. Amended effective November 1, 1989 (see Appendix C, amendment 235); November 1, 1991 (see Appendix C, amendment 410); November 1, 1992 (see Appendix C, amendment 453); November 1, 1998 (see Appendix C, amendment 577); November 1, 2001 (see Appendix C, amendment 617); November 1, 2006 (see Appendix C, amendment 685).
§2T3.2. [Deleted] Historical Note: Section 2T3.2 (Receiving or Trafficking in Smuggled Property), effective November 1, 1987, amended effective November 1, 1989 (see Appendix C, amendment 236) and November 1, 1991 (see Appendix C, amendment 410), was deleted by consolidation with §2T3.1 effective November 1, 1992 (see Appendix C, amendment 453).
* * * * * 4.
TAX TABLE
§2T4.1.
Tax Table Tax Loss (Apply the Greatest) (A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (L) (M) (N) (O) (P)
$2,000 or less More than $2,000 More than $5,000 More than $12,500 More than $30,000 More than $80,000 More than $200,000 More than $400,000 More than $1,000,000 More than $2,500,000 More than $7,000,000 More than $20,000,000 More than $50,000,000 More than $100,000,000 More than $200,000,000 More than $400,000,000
Offense Level 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36.
Historical Note: Effective November 1, 1987. Amended effective November 1, 1989 (see Appendix C, amendment 237); November 1, 1993 (see Appendix C, amendment 491); November 1, 2001 (see Appendix C, amendment 617); January 25, 2003 (see Appendix C, amendment 647); November 1, 2003 (see Appendix C, 653).
– 333 –
SENTENCING TABLE (in months of imprisonment) Criminal History Category (Criminal History Points)
Zone A
Zone B Zone C
Zone D
Offense Level 1 2 3
I (0 or 1) 0-6 0-6 0-6
II (2 or 3) 0-6 0-6 0-6
III (4, 5, 6) 0-6 0-6 0-6
IV (7, 8, 9) 0-6 0-6 0-6
V (10, 11, 12) 0-6 0-6 2-8
VI (13 or more) 0-6 1-7 3-9
4 5 6
0-6 0-6 0-6
0-6 0-6 1-7
0-6 1-7 2-8
2-8 4-10 6-12
4-10 6-12 9-15
6-12 9-15 12-18
7 8 9
0-6 0-6 4-10
2-8 4-10 6-12
4-10 6-12 8-14
8-14 10-16 12-18
12-18 15-21 18-24
15-21 18-24 21-27
10 11 12
6-12 8-14 10-16
8-14 10-16 12-18
10-16 12-18 15-21
15-21 18-24 21-27
21-27 24-30 27-33
24-30 27-33 30-37
13 14 15
12-18 15-21 18-24
15-21 18-24 21-27
18-24 21-27 24-30
24-30 27-33 30-37
30-37 33-41 37-46
33-41 37-46 41-51
16 17 18
21-27 24-30 27-33
24-30 27-33 30-37
27-33 30-37 33-41
33-41 37-46 41-51
41-51 46-57 51-63
46-57 51-63 57-71
19 20 21
30-37 33-41 37-46
33-41 37-46 41-51
37-46 41-51 46-57
46-57 51-63 57-71
57-71 63-78 70-87
63-78 70-87 77-96
22 23 24
41-51 46-57 51-63
46-57 51-63 57-71
51-63 57-71 63-78
63-78 70-87 77-96
77-96 84-105 92-115
84-105 92-115 100-125
25 26 27
57-71 63-78 70-87
63-78 70-87 78-97
70-87 78-97 87-108
84-105 92-115 100-125
100-125 110-137 120-150
110-137 120-150 130-162
28 29 30
78-97 87-108 97-121
87-108 97-121 108-135
97-121 108-135 121-151
110-137 121-151 135-168
130-162 140-175 151-188
140-175 151-188 168-210
31 32 33
108-135 121-151 135-168
121-151 135-168 151-188
135-168 151-188 168-210
151-188 168-210 188-235
168-210 188-235 210-262
188-235 210-262 235-293
34 35 36
151-188 168-210 188-235
168-210 188-235 210-262
188-235 210-262 235-293
210-262 235-293 262-327
235-293 262-327 292-365
262-327 292-365 324-405
37 38 39
210-262 235-293 262-327
235-293 262-327 292-365
262-327 292-365 324-405
292-365 324-405 360-life
324-405 360-life 360-life
360-life 360-life 360-life
40 41 42
292-365 324-405 360-life
324-405 360-life 360-life
360-life 360-life 360-life
360-life 360-life 360-life
360-life 360-life 360-life
360-life 360-life 360-life
43
life
life
life
life
life
life
November 1, 2011
