Report of Interview with Individual Relative to TFRP

Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes, is the IRS's investigative interview used when a business has unpaid employment taxes (Form 941) and the IRS is deciding which individuals to personally assess under Section 6672 of the Internal Revenue Code. The Trust Fund Recovery Penalty (TFRP) equals 100% of the withheld income tax and the employee share of FICA that the business failed to remit — assessable against any person the IRS deems both responsible and willful.

The interview is intentionally detailed. It asks about your ownership stake, corporate title, signing authority on bank accounts, ability to hire and fire, involvement in selecting which creditors got paid when funds were tight, and specific knowledge that payroll deposits were not being made. Answers are used to build a responsibility case that supports assessment against you personally — the tax follows the individual even if the business closes or files bankruptcy.

Because Form 4180 answers are recorded, signed, and later relied on at Appeals and in Tax Court, taxpayers should almost always be represented by a CPA, attorney, or Enrolled Agent for the interview. Written responses through counsel are generally preferable to a live in-person interview, and the IRS's authority to compel the interview is limited.