IRS Letter 6330C
Notice of Your Right to a CDP Hearing — Trust Fund Recovery
The IRS is proposing personal liability for your business's unpaid payroll taxes.
Deadline
30 days to request a CDP hearing
The Trust Fund Recovery Penalty assessment is proposed — you have 30 days to contest it via a CDP hearing. Miss this and the TFRP becomes a personal assessment against you.
Act within days — enforcement is imminent or already in progress.
What IRS Letter 6330C Means
Letter 6330C is the Collection Due Process (CDP) notice related to a proposed Trust Fund Recovery Penalty (TFRP) assessment. The TFRP makes business owners, officers, and responsible parties personally liable for the 'trust fund' portion of unpaid payroll taxes — the employee withholding that was not remitted to the IRS.
The trust fund portion consists of employee income tax withholding and the employee share of Social Security and Medicare taxes. These are funds the employer holds in trust for the government. When they're not remitted, the IRS can bypass the business entity entirely and assess personal liability against any 'responsible person' who 'willfully' failed to ensure the taxes were paid.
Letter 6330C is the formal notice that the TFRP is being proposed against you personally. The CDP hearing within 30 days is your primary opportunity to contest whether you are a responsible person, whether the non-payment was willful, or whether the amount proposed is correct. Missing this deadline severely limits your options.
What the IRS Can Do If You Don't Respond
- Assess the Trust Fund Recovery Penalty against you personally — bypassing any business entity protection
- Levy your personal bank accounts, wages, and assets to collect the TFRP
- File a Notice of Federal Tax Lien against your personal property
- Pursue collection from any and all responsible persons simultaneously
What You Should Do Right Now
- 1
Request a CDP hearing within 30 days — this is your primary defense
- 2
At the hearing, contest whether you are a 'responsible person' (had authority and duty to pay)
- 3
Contest whether your failure to remit was 'willful' (intentional or reckless)
- 4
Contest the calculated amount of the trust fund shortfall
- 5
Do not delay — the 30-day CDP deadline is jurisdictional
- 6
Engage a CPA or tax attorney experienced in employment tax disputes immediately
Resolution Options Available to You
Contest the TFRP and protect your personal assets through professional representation
The CDP hearing is conducted through the Office of Appeals — a TFRP specialist can argue your case
If the TFRP is assessed, a personal installment agreement may be available to pay it over time
Frequently Asked Questions About IRS Letter 6330C
What is the Trust Fund Recovery Penalty?
The TFRP is a 100% penalty equal to the unpaid employee withholding amounts (income tax, Social Security, Medicare employee share). It is assessed personally against any person who had control over financial decisions and willfully failed to ensure the taxes were paid.
Who is a 'responsible person' for TFRP purposes?
The IRS looks at anyone with authority to pay business debts and who decided not to pay payroll taxes — including owners, officers, directors, bookkeepers, and even outside payroll service providers in some cases. The label is broad.
What does 'willfully' mean for the TFRP?
Willfulness does not require intent to defraud. It means knowing the payroll taxes were due and choosing to use the money for something else — like paying vendors or rent. Knowledge plus choice is enough.
Can multiple people be assessed the same TFRP?
Yes — all responsible persons can be assessed the full amount of the trust fund penalty. However, payments made by any one responsible person reduce what others owe. The IRS cannot collect more than 100% of the unpaid trust fund total.
Professional References
IRC: IRC §6672 — Failure to Collect and Pay Over Tax; IRC §6330 — CDP Rights
IRM: IRM 5.7.4 — Trust Fund Recovery Penalty Assessment
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