What is the Trust Fund Recovery Penalty and can it hit me personally as a foreign LLC owner?
My attorney mentioned something terrifying called the Trust Fund Recovery Penalty (TFRP) related to payroll taxes. He said the IRS can go after me personally even though my LLC is supposed to protect me from personal liability. Is this true? I'm the sole owner of a foreign-owned LLC and I manage payroll. What exactly is a trust fund tax? How does the IRS decide who is personally liable? Can they reach my personal assets overseas?
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