IRS is extremely aggressive pursuing collection of employment taxes. Not-paying employer’s and employee’s portion of taxes can have serious consequences for employers and the employees. Employers can be subject to criminal and civil sanctions for willfully failing to report and pay employment taxes. Employees suffer as they do not get credits for social security, Medicare, or unemployment benefits when employers do not report or pay employment and unemployment taxes. As a result, penalties for failing to report or pay your payroll taxes on time are much more severe than other types of penalties. They can tremendously multiply the amount you owe in a very short time.
Your initial answers to IRS can determine whether you stay in business or not. It is critical you hire a professional representative who knows how the IRS operates.