The Trust Fund Recovery Penalty: When You’re Personally Liable for Business Payroll Taxes

If your business owes payroll taxes to the IRS, there’s a damn good chance you’re going to end up being personally liable.

When you own a business, you’re required to take FICA taxes from your employees’ paycheck. You have to keep your share and your employees’ share of FICA taxes in a trust and later pay the taxes from the trust to the IRS.