A payroll tax problem is the most serious type of tax you can have with the IRS. The IRS monitors all employers to see if you are late with payroll deposits. If you owe IRS back payroll taxes, you will be assigned a Revenue Officer and he or she will come to your place of business and will be very aggressive about collecting from you and gathering information. The Revenue Officer will subpoena a bunch of financial documents and they may or may not show you respect and understanding. They may suggest that you borrow money to pay off your debt, and then on the other hand file a Federal tax lien against you so that you can't borrow money.
Yes, if you owe IRS back payroll taxes it is a horrible, stressful feeling. S0, if you are experiencing this, you are not alone. And through all this, you have to assure your employees that everything will be alright, assure your customers all will be well, when in fact, you may not be sure of any of these things.
