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Thursday
May192011

Trust Fund Recovery Penalty: Does it apply to me as a volunteer director of a Nonprofit?

There is an exception to the TFRP general rules of IRC § 6672 for unpaid volunteer directors or trustees of nonprofit organizations as long as the director is serving solely in an honorary capacity, does not participate in the day-to-day financial operations of the organizations, and does not have knowledge of the failure to file.  See IRC § 6672(e).