One of the most common issues facing the IRS today is how to deal with businesses that owe payroll taxes.
This is a hot button for the IRS, which instinctively wants to close the business, sell its assets, and then pursue any unpaid balance against the responsible parties individually. The Service feels these people withheld money from employees in trust for the IRS, but spent it elsewhere. The IRS says the violation of this trust is tantamount to thievery.
The Internal Revenue Code provides a variety of ways to resolve these disputes, often allowing the business to continue its operations. But you must act quickly.
So don’t despair there are solutions. Discuss possible alternatives in resolving this problem.