What This Letter Means
Letter 5558, Post Appeals Mediation Denial - TFRP, tells you that IRS Appeals denied your request for post-Appeals mediation in your Trust Fund Recovery Penalty (TFRP) case.
The TFRP makes individuals personally liable for unpaid payroll taxes withheld from employees when they were responsible for paying them and willfully failed to. Post-Appeals mediation is an optional step. If you and Appeals can't settle a TFRP case, you can ask for a mediator to help. The Appeals Team Manager decides whether to accept the request and has the authority to deny it.
Can You Challenge the Denial?
Not formally. The denial isn't subject to further review within Appeals, and it isn't subject to judicial review. You can, however, ask for a conference with the Appeals Team Manager to discuss the denial.
What Happens Next
With mediation off the table, Appeals proceeds to close your case under its standard procedures. Expect the TFRP case to be finalized based on where Appeals left things.
What to Do
- Read the letter for any reason it gives for the denial.
- Decide whether a conference with the Appeals Team Manager is worth requesting. Do it promptly, since the case is moving toward closing.
- Review your Appeals file and what was offered or discussed.
- Plan for collection. Once the penalty is assessed, you'll get balance due notices. Payment plans, an offer in compromise or other options may be available.
- Keep copies of all correspondence.
TFRP cases have limited second chances. Get advice on your remaining options before the case closes.
If you received Letter 5558 and are facing a Trust Fund Recovery Penalty, call us at (813) 229-7100.