IRS Revises Form 4180 to Give Revenue Officers Ability to Expedite TFRP Interviews

The Internal Revenue Service released (SBSE-05-0812-065) on revisions to Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes. Specific guidance on how the revised Form 4180 should be used is as follows:

Form 4180 -Page 1 Page 1 incorporates core willfulness and responsibility questions to support assertion recommendations and may be used as an abbreviated interview when there is only one responsible party or in situations when the business entity and ownership structure is not complex.

Question responses on page 1 will prompt revenue officers to make determinations as to whether the TFRP interview should be continued on subsequent pages. For example, if the party being interviewed indicates they used the services of a third-party payer, or if the party being interviewed is the third-party payer, the form will direct the revenue officer to complete subsequent section(s) on page 3 related to third-party payers. If the party being interviewed indicates that other individuals had the responsibility or authority to perform the core responsibilities in Section II, the form will direct the revenue officer to complete Section IV and V on page 2.

If the revenue officer determines that page 1 of the form sufficiently addresses willfulness and responsibility, and is not prompted to complete additional sections of the form, the taxpayer’s signature may be obtained on page 1.

Form 4180 -Page 3 The new Payroll Service Provider (PSP) or Professional Employer Organization (PEO) questions will assist the revenue officer in TFRP investigations when a PSP or PEO is involved. If the business has never used the services of a PSP or PEO, Section VI will not require completion.

Section VII on page 3 will only require completion for excise tax case investigations.

If the revenue officer determines page(s) 2 and/or 3 of the form must be completed, the taxpayer’s signature should be obtained on page 4. Page 4 provides narrative space to record any additional information provided by the taxpayer.

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