Louisville, KY -- (SBWIRE) -- 07/30/2013 -- Tax attorney Louisville KY specialist Darby Smith recently proved his expertise at aiding corporations attempting to settle delinquent tax debts when he was able to settle a Trust Fund Recovery Penalty in excess of $100,000 for less than $8,000.

Of course, these results are limited to facts of this individual case. Companies and corporations in Kentucky facing a similar situation with Trust Recovery Penalty (TFRP) from the IRS will need to seek out a Louisville attorney like Darby Smith for tax advice.

Many taxpayers believe if they operate through corporations their personal assets are protected by the corporate shield. However, Federal taxes are an exception. If a corporation does not pay its income tax withholding and withheld Social Security taxes, the IRS can pursue its collection from officers, directors, stockholders, key employees and anyone else who could possibly be held liable for the (TFRP) under the Internal Revenue Code Section 6672(a).

Section 6672 of the Internal Revenue Code says in part:

(a) GENERAL RULE - Any person required to collect, truthfully account for, and pay over any tax imposed by this title who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.

(b) This statute gives the IRS the ability to go collect withheld employment taxes where it is unable to collect from the corporate entity. Section 6672 applies to trust fund taxes imposed by Section 7501 of the Internal Revenue Code. It does not apply to the corporation's portion of the social security taxes, interest and late payment penalties.

In certain circumstances, the IRS will accept a lesser amount to settle such delinquent tax debts. Finding a suitable and legal solution requires a Louisville tax attorney with a proven track record. In addition to experience handling TFRP for clients, Darby Smith specializes in tax law needs such as corporate taxation, S-Corporations, partnership taxation, international taxation, income taxation of trusts & estates, estate and gift tax, delinquent taxes and levies.

About Darby Smith
Attorney, Darby L. Smith, serves the legal needs of clients throughout the Louisville metropolitan area and other parts of Kentucky in various civil practice areas. Since 1997, he has served thousands of individual and business clients as legal counselor, litigator, transactional attorney and outside general counsel. His office is conveniently located in Norton Commons in Northeast Louisville, Kentucky. For more information, visit http://www.darbysmithlaw.com/.