Which of the following is not true regarding the trust fund recovery penalty? Th

ID: 2409100 • Letter: W

Question

Which of the following is not true regarding the trust fund recovery penalty?

The penalty may only be assessed against what the IRS defines as "responsible persons."

The penalty may only be assessed against individuals who willfully failed to collect, truthfully account for, and pay over the trust fund taxes.

The trust fund recovery penalty may not be assessed against a member of a board of trustees of a nonprofit organization.

The IRS can collect the full amount form any one of the individuals against whom the trust fund penalty is assessed.

Answer is option C

The trust fund recovery penalty may not be assessed against a member of a board of trustees of a nonprofit organization.

Explanation :

The Trust Fund Recovery Penalty may be assessed against any person who:

- Is responsible for collecting or paying withheld income and employment taxes, or for paying collected excise taxes, and

- Willfully fails to collect or pay them.

a member of a board of trustees of a nonprofit organization is included in a class of a responsible person

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.