Payroll Tax Problems
The most serious of tax problems is the failure to collect, account for, and pay to the government any payroll taxes that were, or should have been, withheld from employees. These are referred to as “trust funds” and are vigorously collected using the most aggressive tools available to the government.
Employers who pay their employees the amount of the employees’ net payroll and fail to remit the taxes that are withheld/supposed to be withheld are the classic case of payroll tax problems. And the IRS will come after you very aggressively.
When the government detects “pyramiding” of trust fund taxes through continued payment of net wages and continuing failure to remit the related payroll taxes, they will not hesitate to seize assets and effectively close the business down. If you are delinquent in the payment of trust fund tax it is imperative that you address the issue at the earliest possible time. And you, as the responsible individual, are also held personally liable for these “Trust Fund Taxes”