IRS Letter 1153
Trust Fund Recovery Penalty (TFRP) Proposal
IRS Letter 1153 notifies you that the IRS intends to assess a Trust Fund Recovery Penalty (TFRP) against you personally. This penalty applies to individuals deemed responsible for collecting and paying employment taxes that were withheld from employees but not submitted to the IRS.
If you don’t respond, the IRS can legally shift the business tax debt to you personally, making you liable for thousands (or more).
▸ Why Did I Receive Letter 1153?
You received this notice because:
You were an owner, officer, bookkeeper, or payroll manager at a business
The business failed to deposit trust fund taxes (like Social Security and income tax withholdings)
The IRS believes you are personally responsible and willful in not paying
The IRS is proposing to assess a civil penalty equal to the unpaid taxes
▸ What’s in the Letter?
Letter 1153 outlines:
The amount of unpaid trust fund tax
The IRS’s intent to assess the penalty against you personally
Your right to appeal within 60 days
A copy of Form 2751 (Proposed Assessment of TFRP)
- If you don’t respond within the 60-day window, the IRS can assess the penalty and begin collection from your personal assets.
▸ What Should You Do?
Review the letter and timeline carefully.
If you disagree, file a timely protest to request an appeal.
If you agree, you can sign Form 2751 — but do so only after legal review.
Avoid delay. Personal liability means the IRS can pursue your bank account, wages, or home.
▸ When to Call a Tax Attorney
The TFRP can devastate your personal finances. A tax attorney can help you:
Challenge the assessment if you weren’t responsible or willful
Respond with a formal protest letter
Represent you during the appeals process
Negotiate a resolution if the penalty is ultimately assessed
▸ Don’t Take the Fall for a Business Tax Issue
If you’ve received IRS Letter 1153, you could be held personally liable for business tax debt.
Call Scammahorn Law Firm at (903) 595-1000 or fill out this quick form to schedule a consultation and protect yourself.