Many small businesses get in Cash Flow Problems for all kinds of reasons. How they handle these problems, especially when payroll taxes are involved, usually determines if they stay in business or not.
The IRS takes an extremely strong position on payroll tax violations. They would rather close the business and sell off all the assets instead of trying to work out a deal with the business.
The worst thing about business payroll taxes is that the IRS has the ability to collect business payroll taxes from anyone they think was responsible for not paying the taxes. For example, the business owner or any check signer on the business bank account may be singled out for collection activity.
They will try everything to get these payroll taxes. Usually a visit to your home or work is in order to start the collection procedures. Then all of the weapons in their arsenal can be used (Liens, Levies, or Seizure) until the taxpayer has agreed to some type of repayment.
Once the IRS has determined that the business cannot pay the payroll taxes and they have turned their sights on the individuals they think are responsible…Look Out!