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Am I personally liable for my company's payroll taxes?

Updated October 8, 20261 sourceTaxTruce teamFact checked
The short answer

You can be. If you had the duty and power to pay them and willfully didn't, the IRS can charge you the Trust Fund Recovery Penalty and collect from your personal assets. Paying other bills first when payroll taxes are due is a sign of willfulness.

Words to know

Trust Fund Recovery Penalty (TFRP)
A penalty that makes the people in charge of a business personally owe its unpaid trust fund taxes.

Sources

  1. IRS: Employment taxes and the Trust Fund Recovery Penalty

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