Trust Fund Recovery Penalty: I am not a “responsible person,” I just work here.

Under the TFRP rules and case law, almost any officer, director, shareholder, member, manager or other owner can be found liable for TFRP.  In investigation, the IRS looks to factors such as a person’s ability to hire and fire employees, exercise authority over which creditors get paid and when, control of payroll and control of the Corporation’s voting stock.  IRM 5.7.3.3.1(4)  In many instances, the primary factor to determine whether or not a “responsible person” designation is made whether or not that person had the decision making ability (either by themselves or with others) to pay other creditors before the IRS.  If the answer is yes, then it is likely that the TFRP will apply.