Miami Gardens, FL Preparing for an IRS Trust Fund Interview

In Miami Gardens, FL, an IRS trust fund interview is a records-based review of unpaid payroll taxes and personal exposure, not just a title check. The IRS is trying to decide whether the business failed to pay withheld taxes, who controlled those funds, and whether one or more people may face Trust Fund Recovery Penalty exposure under IRM 5.7.4. The most useful preparation is to organize proof of payroll authority, payment decisions, and the current status of the business tax filings before you speak.

What the IRS is trying to decide

Under IRM 5.7.4, the Trust Fund Recovery Penalty is an alternative collection tool when unpaid trust fund taxes cannot be fully collected from the business. The IRS may ask whether the business withheld income and employment taxes, whether those amounts were deposited, and whether any individual had the duty and power to direct collecting, accounting for, and paying the taxes.

The interview is designed to sort out responsibility and willfulness. The IRS says a responsible person may include an officer, director, shareholder, or another person with authority over funds. It also says using available funds to pay other creditors while payroll taxes remain unpaid can indicate willfulness. That does not mean every manager is personally liable, and it does not mean a business must have closed before the IRS can pursue the penalty.

Records that answer the responsibility question

Bring documents that show who actually made payroll decisions. Helpful records usually include payroll returns for the quarters at issue, bank statements, canceled checks or payment confirmations, officer or operating agreements, signature cards, internal emails about bill payment priorities, and any account transcripts showing what the IRS posted. If payroll duties were handled by a third-party provider, keep the service agreement and any instructions showing who approved funding and deposits.

The IRS guidance also distinguishes between a person with real authority and an employee who simply paid bills as directed. That distinction matters. If you want to show limited control, look for records proving that another person decided which creditors to pay, signed disbursements, or controlled online banking and tax deposits. If you want to show the company can resolve the debt without expanding personal exposure, bring updated filing status, deposit history, and a current payment plan proposal if one has already been discussed.

How the interview may unfold

IRM 5.7.4 says the IRS generally works these cases on the Automated Trust Fund Recovery Penalty system and documents the determination in the case history. The interview may begin with basic questions about ownership, payroll duties, and financial control, then move to who knew the taxes were unpaid and what was paid instead. If the IRS identifies additional potentially responsible persons during the interview, it may continue the interview while limiting probing questions about the newly identified person.

You do not need to turn the meeting into a full legal defense, but you should avoid guessing. If you do not know who approved a transfer or why a creditor was paid first, say so and point to the records. A hypothetical example: if one manager merely processed checks according to written instructions while another person chose the payment priorities, those facts can lead to different conclusions about responsibility. The goal is to give the IRS a clear fact pattern, not a polished story.

Practical next step before the meeting

Build a quarter-by-quarter folder. Put the payroll return, transcript, deposit proof, bank activity, and any correspondence for each period in one place. Then make a short timeline of who handled payroll, who approved payments, and when the business first knew deposits were missing. That timeline helps you answer the interview consistently and quickly.

If the IRS has already contacted you, consider a case review before the interview so you know which facts are most important. Use IRS Notice 784 for background on the penalty, and review IRM 5.7.4 for the procedure the IRS follows. If the business is in bankruptcy or the collections picture has changed, say so early, because that can affect how the file is handled. Just do not assume that hiring a representative, filing a complaint, or asking for relief automatically stops collection or removes the underlying debt.

Questions about Preparing for an IRS trust fund interview

Sources and related resources

• Internal Revenue Manual 5.7.4
• Employment taxes and the Trust Fund Recovery Penalty (TFRP)

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General educational guidance. Relief and collection protections depend on the actual notices, account history, financial evidence, and applicable law. A consultation does not itself stop enforcement or preserve an appeal deadline.