If the TFRP was assessed to the previous president he most likely received correspondence from the IRS requesting a 4180 interview to determine if he was responsible for not paying the payroll taxes and the IRS determined he was responsible. Either the past president ignored or did not receive the notice (we have a current client with this issue) or he appeared at the interview and was deemed responsible. In either case he can appeal the TFRP assessment up to 60 days at which time the assessment becomes final. Assuming you are representing the past president, you can resolve his issues either by entering him into an installment agreement or submitting an offer in compromise. If you have evidence that he should not have been responsible, you can submit an offer in compromise doubt as to liability (which we are submitting with the client mentioned above). With regard to the bankruptcy, it will have no affect on the TFRP assessment. I does however remove a source to collect the Trust Fund portion of the liability that the past president is now responsible for paying. If the company is out of business it also eliminates the ability to request Status 63.