05/11/2026
Trust Fund Recovery Penalty California
California business owners — this one is critical. Please read it all the way through.
If your business has fallen behind on payroll taxes there is a specific IRS tool called the Trust Fund Recovery Penalty — the TFRP — that can make you personally responsible for 100% of the unpaid employee tax withholdings.
Not your business. You personally.
Your personal bank account. Your personal savings. Your home. Everything.
Your LLC doesn't protect you from this. Your corporation doesn't protect you. The TFRP is specifically designed to pierce business structures and hold individuals personally liable when employee-withheld payroll taxes are not deposited with the IRS.
And the definition of who gets assessed is broader than most people realize. It's not just the business owner. It includes anyone with financial authority — officers, controllers, bookkeepers with check-signing authority, even some accountants.
Here's what makes this even more urgent:
When the IRS issues IRS Letter 1153 — the formal TFRP assessment notice — you have exactly 60 days to file a written protest and request an appeal. Miss that window and the penalty is assessed permanently with no further administrative appeal available.
We have helped California business owners throughout Orange County, Los Angeles County, and across California fight TFRP assessments, reduce personal liability, represent them through IRS Revenue Officer interviews, and negotiate resolutions that don't destroy their personal finances.
If you have received Letter 1153 — call us today. Not tomorrow. Today.
📞 FREE immediate consultation: (714) 927-0038
🌐 taxrelieforangecounty.com
📍 1122 E Lincoln Ave Suite 201B Orange CA 92865