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TFRP-Associates and Limiting Shareholder Liability

Earn One Federal CE with Jessie Seaman, Esq., EA
March 26, 2020, 1:00 pm – 1:50 pm EST

Live Online IRS Program Number: X9QQU-T-00642-20-O
Self-Study IRS Program Number: X9QQU-T-00642-20-S

This webinar will focus on federal tax filing and deposit requirements if a business issues payroll. Special attention will be paid to corporations taxed under sub-chapter S of the Internal Revenue Code since a “reasonable wage” requirement exists for many shareholders actively participating in the business. The webinar will outline the differences between contract labor and employees so business clients may be counseled on Worker Classification. Attendees will learn about personal liability through the Trust Fund Recovery Penalty (TFRP) assessment for parties that are deemed responsible for payroll deposits. Strategies, IRS process, and timelines for TFRP representation, including the 4180 interviews, will be covered.

Learning Objectives
Upon completion of the course, you will be able to:

  • Determine a Worker’s Classification as an employee/wage-earner or contract laborer/self-employed taxpayer.
  • Identify when a “Reasonable Wage” must be paid to a Shareholder.
  • Know the tax forms business clients must file when payroll is issued and ability to advise clients of federal tax deposit schedules, and the required mode (EFTPS), based on a client’s payroll tax during a “look-back period”.
  • Understand the risk of personal liability to “responsible parties” in the case of a Trust Fund Recovery Penalty.
  • Effectively walk a client through the 4180 interview and the documentation a Revenue Officer will request or summons, and explain the letter 1153 and 2751 regarding the IRS determination of TFRP assessment.