Next Level Tax Resolution

How the IRS Trust Fund Penalty Pierces Your LLC Shield

Think your corporate LLC shield protects your home and personal bank account from company payroll tax debt?

Under IRC § 6672 (Trust Fund Recovery Penalty), the IRS assesses 100% of unpaid employee withholding directly against responsible individuals personally, bypassing corporate asset protections entirely. Protect your personal assets.

If you've fallen behind on payroll tax deposits — the withholding from your employees' paychecks that's supposed to go to the IRS — and you've started reading about the Trust Fund Recovery Penalty, the anxiety you're feeling is a reasonable response to what you're reading, not an overreaction. This is genuinely one of the more serious situations in this field, because it's one of the few places where a business debt can become a personal one. You deserve a straight explanation of how it actually works, not just the version that shows up in search results at 1am.

The Trust Fund Recovery Penalty (TFRP) is a personal assessment the IRS can make against an individual — not the business — equal to the unpaid trust fund portion of payroll taxes (federal income tax withholding and the employee share of Social Security and Medicare). It applies when a 'responsible person' 'willfully' failed to pay over withheld payroll taxes. 'Responsible' is broader than 'owner' and can include officers, managers, and even bookkeepers with real financial authority.

With over 30 years of experience as a CPA, Katherine Johnson has dedicated her career to helping clients navigate the complexities of taxes. Passionate about alleviating financial stress, she specializes in assisting individuals and small businesses facing tax challenges, including unpaid taxes, audits, and penalties.

Katherine's extensive knowledge and personalized approach enable her to develop effective strategies tailored to each client's unique situation. Her commitment to excellence and clear communication ensures that clients feel supported throughout the resolution process.

She earned her BS in Accounting and Marketing/Finance from Georgetown College and holds the prestigious Certified Tax Resolution Specialist (CTRS) designation from the American Society of Tax Problem Solvers (ASTPS).

IRC § 6672 | 100% Personal Penalty Assessment

The Next Level Tax Resolution Difference: Direct CPA Care

Tired of being passed around by national tax relief call centers?

Founded by Katherine M. Johnson, CPA, CTRS in Georgetown, KY, Next Level Tax Resolution provides direct, expert tax debt representation across all 50 states—with zero handoffs to sales representatives or processing clerks.

With over 30 years of experience as a CPA, Katherine Johnson has dedicated her career to helping clients navigate the complexities of taxes. Passionate about alleviating financial stress, she specializes in assisting individuals and small businesses facing tax challenges, including unpaid taxes, audits, and penalties.

Katherine's extensive knowledge and personalized approach enable her to develop effective strategies tailored to each client's unique situation. Her commitment to excellence and clear communication ensures that clients feel supported throughout the resolution process.

She earned her BS in Accounting and Marketing/Finance from Georgetown College and holds the prestigious Certified Tax Resolution Specialist (CTRS) designation from the American Society of Tax Problem Solvers (ASTPS).

Katherine M. Johnson, CPA, CTRS | Direct 1-on-1 CPA Representation

How Solopreneurs Can Remove Thousands in Late IRS Penalties

First-Time Penalty Abatement for Solopreneurs

Did late-filing or late-payment IRS penalties double your self-employment tax bill? Under IRM 20.1.1.3.3.2.1, taxpayers with 3 years of clean prior compliance qualify for First-Time Penalty Abatement (FTA). Lower your balance by removing administrative penalties.

IRM 20.1.1.3.3.2.1 | First-Time Penalty Abatement (FTA)

Penalty Abatement: Reduce or Remove IRS Tax Penalties Legally
IRS penalties can quickly double or triple your tax bill. Learn how First-Time Abatement and Reasonable Cause relief allow taxpayers to legally reduce or eliminate IRS tax penalties.

Getting hit with IRS penalties can feel like the situation is spiraling fast. What starts as a missed deadline or underpayment can quickly grow into a much larger financial burden once failure-to-file and failure-to-pay penalties and interest are added. The good news is that penalty abatement offers a legitimate, legal way to reduce or even eliminate certain IRS penalties if you qualify and follow the proper administrative or statutory process.

IRS penalty abatement is the legal reduction or cancellation of failure-to-file, failure-to-pay, or accuracy-related penalties under Internal Revenue Code § 6651 and IRM 20.1. Taxpayers can qualify through First-Time Penalty Abatement (FTA) for clean prior compliance, or Reasonable Cause Relief by proving uncontrollable life events like severe illness, disaster, or lost records.

Did you know? When the IRS abates a penalty, all compounding interest that accrued on that specific penalty is automatically erased as well!

Why you should work with a CPA to Maximize Savings
While taxpayers can submit Form 843 independently, navigating complex tax years or multi-year penalty assessments often requires licensed representation. Certified Tax Resolution Specialists (CTRS) understand how to present facts in compliance with Internal Revenue Manual standards.

At Next Level Tax Resolution, Katherine Johnson, CPA, CTRS evaluates your complete IRS account transcript, identifies every qualifying penalty year, files Form 843 or Form 2848 Power of Attorney, and appeals improper denials with the IRS Office of Appeals.

Combining penalty abatement with structured installment agreements or an Offer in Compromise ensures you achieve the maximum possible reduction on your total tax liability.

Katherine M. Johnson, CPA, CTRS
Katherine M. Johnson is a licensed CPA with over 30 years of experience and a Certified Tax Resolution Specialist (CTRS). She personally handles every case — representing individuals and businesses before the IRS and state revenue departments nationwide.

Why National Tax Relief Call Centers Fail Hospitality Businesses

How to choose a Licensed CPA Over Call Centers for Restaurants

National tax relief sales companies rely on high-volume call centers and sales representatives who route files to unlicensed case managers. Hospitality tax resolution requires deep understanding of sales tax trust fund laws, local occupational taxes, and IRS 941 rules. Work directly with Katherine M. Johnson, CPA, CTRS bound by Treasury Circular 230.

Treasury Circular 230 | Direct Licensed CPA Representation

𝗕𝘂𝘆𝗶𝗻𝗴 𝗮 𝗛𝗼𝘂𝘀𝗲 𝗼𝗿 𝗥𝗲𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝘄𝗶𝘁𝗵 𝗕𝗮𝗰𝗸 𝗧𝗮𝘅𝗲𝘀?

Mortgage underwriters (Fannie Mae, FHA, VA) require tax return transcripts directly from the IRS via Form 4506-C. You CAN buy or refinance a home while owing back taxes, provided you have all returns filed, an active Direct Debit Installment Agreement, and 3 months of compliant payment history.

Form 4506-C | FHA/VA 3-Month Payment Rule