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Hi, my name is Mark. I will be happy to help you with your questions.
You mentioned that you signed the payroll checks. Did you also sign the payroll reports (941, 940, W-3)?
Is this the first notice that you received from the IRS?
Do you know if the forms 941 reports were timely filed for 2006 and 2007?
Have you been assessed a trust fund recovery penalty?
Do you know if the returns were timely filed? When did the IRS issue the Trust Fund Penalty to you. For 2006 payroll taxes they would have needed to assess the penalty by April 15, 2010.
The IRS is only able to collect on the taxes once So it is helpful if the owner paid the penalty (I know this is probably not the case).
The statute of limitation on the payroll taxes is 10 years (for collection purposes). This is based on the filing date. So assuming that the 2nd quarter of 2006 was timely filed by July 31, 2006. The statute for this period would have expired on July 31, 2016. The trust fund recovery penalty was probably assessed in 2009 or 2010. So the statute of limitation for the penalty would also be 10 years. This would expire in 2019 or 2020 (depending when it was assessed). It is possible that the statute would be extended if you applied for an installment agreement, offer in compromise, or a few other exceptions.
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