In the lasts few months, we have reported what the IRS and Department of Justice will do to your company if payroll tax obligations are not met. Here's an example:
The case: CG owned a restaurant and had significant unpaid employment and income taxes. He acknowledged the unpaid liability and did not challenge the IRS in court. But just owning up to the unpaid taxes fell short for the IRS.
Held: The court not only upheld the IRS requirement that the taxpayer remit the employment and income taxes is had assessed, it also granted the IRS request for a 5-year injunction requiring the taxpayer to comply with the tax law in the future. The injunction also allows the IRS to closely monitor the taxpayer and gives the IRS an array of options the next time the taxpayer misses a deadline or does not make a full tax payment. For example, the IRS can go back to court and, if it can show that the taxpayer did not comply with the law, ask for fines, seizure of bank accounts or other assets, a receiver for the firm, or a contempt finding that could result in fines or jail time. [U.S. v. Chul Goo Park, No. 5:14-cv-05664]
Key point: The new IRS/Department of Justice approach to getting an injunction lets the IRS move against taxpayers much faster and with more enforcement options than under the old process.