trust fund recovery penalty (TFRP)

Definition from Nolo’s Plain-English Law Dictionary

A penalty from the IRS for not paying "trust fund" taxes, which are taxes a company withholds from an employees paycheck, including Social Security and Medicare taxes and federal income (withholding) taxes. This penalty can be assessed against any owner, officer, or company employee whose job is related to accounts payable, payroll, or the financial operations of the business.

Definition provided by Nolo’s Plain-English Law Dictionary.