The IRS reports that approximately 2 million businesses owe almost $50 billion in Payroll Tax. The IRS is increasing its enforcement actions, so the probability of facing a lien, levy or other action may be increasing. To determine if you may have a Trust Fund Tax Liability, there are two primary determinant tests: (1) whether you are “responsible” for collecting or paying withheld income and employment taxes, or for paying collected excise taxes; and (2) whether you “willfully failed” to collect or perform your obligations.

Typically, the IRS has the right to take enforcement action against anyone who meets these determinant tests, even if they were not an officer or employee of the corporation which originally collected the payroll taxes.