Payroll Tax Problems
The IRS views failing to pay payroll taxes as the cardinal sin of tax delinquency. This is because a large portion of the payroll taxes are your employees' withholdings. You are in effect stealing from your employees simply by not staying current with your payroll tax obligations.
As a result, penalties for failing to file and pay your payroll tax obligations on time are much more severe than other types of tax related penalties. These types of penalties can drastically multiply the amount you owe in a very short time.
Somebody in your business has financial responsibility. Even if you are incorporated, falling behind on payroll taxes can quickly shift from a business problem to a personal problem. Being incorporated will not lesson the financial responsibility. The IRS is extremely aggressive when pursuing collection of this type of tax. Liens and Levy's are common place and quick.
We would strongly advise not meeting with or discussing payrole delinquency's with the IRS on your own. A professional representative who understands how to navagate the process is your best asset.