Trust Fund Recovery Penalty
Author: Susan Harper
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
The Trust Fund Recovery Penalty (TFRP) is one of the IRS’s most powerful enforcement tools and represents significant personal liability for individuals responsible for collecting and remitting payroll and excise taxes. Business owners, officers, and other decision makers may find themselves personally assessed for unpaid employment taxes—often with little warning and devastating financial consequences. This online course provides tax and accounting professionals with a clear, practical understanding of how the IRS applies the TFRP and how to effectively represent clients facing potential assessment.
Led by Susan Harper, Certified Fraud Examiner and retired IRS Internal Revenue Agent, this course walks participants through the legal foundation of the TFRP, how the IRS determines who qualifies as a ‘responsible person,’ and what occurs during the Form 4180 Trust Fund Recovery Penalty interview. Participants will learn how the TFRP amount is calculated, how assessments are made, and—most importantly—strategies to help business owners and employers avoid TFRP exposure. This practical course equips practitioners with the insight needed to guide clients through high stakes IRS employment tax matters with confidence.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Publication Date: May 2026
Designed For
This course is designed for professionals who advise businesses and individuals on employment tax compliance or represent clients before the IRS.
Topics Covered
- Overview of the Trust Fund Recovery Penalty (TFRP)
- Responsible person determination and multi‑party responsibility
- Form 4180 Trust Fund Recovery Penalty interview process
- Calculation of the Trust Fund Recovery Penalty
- IRS assessment and collection procedures
- Prevention strategies and employer best practices
Learning Objectives
- Define the Trust Fund Recovery Penalty and identify taxes subject to the TFRP
- Determine who may be considered a responsible person for TFRP purposes
- Explain what occurs during a Form 4180 Trust Fund Recovery Penalty interview
- Calculate the Trust Fund Recovery Penalty amount based on unpaid employment taxes
- Explain the IRS process for assessing the Trust Fund Recovery Penalty
- Apply strategies to help employers reduce or avoid Trust Fund Recovery Penalty exposure
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
None
Advance Preparation
None
