# Trust fund recovery penalty

> Trust fund recovery penalty — A penalty of 100% of the withheld income tax and employee FICA a business failed to pay over, assessed personally on each responsible person who acted willfully — an officer, or anyone who signs the checks.

Source: https://lopifi.com/glossary/trust-fund-recovery-penalty
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is trust fund recovery penalty?** In accounting, trust fund recovery penalty means a penalty of 100% of the withheld income tax and employee FICA a business failed to pay over, assessed personally on each responsible person who acted willfully — an officer, or anyone who signs the checks.

## Also known as

- TFRP

## Words this system refuses for it

- late deposit penalty (2% to 15% of the deposit)

- **Category:** Payroll
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** fica