The owners of a company I was once involved with avoided the assessment of trust fund penalty because they had loaned the company money on several occasions to meet payroll. The accounting firm was Grant Thornton, in the Chicago area. Delinquent withholding etc. totaled about $80,000. I think the owners would have been liable for about $30,000. I am certain they were absolved of responsibility. What I want to know is whether that kind of exemption still exists.
There is no exemption based upon lending money to meet payroll. The tests is whether the parties were "responsible persons" under Section 6672 of the Internal Revenue Code and relaevant case law. Basically, if the party could make the decision as to having creditors paid instead of the IRS, then that party is a responsible party. Additionally, these cases are highly factual determinations and can swing on the smallest details.
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