If federal income tax and employment taxes (including Social Security) are withheld from employees’ paychecks and not handed over to the IRS, the so-called 100% Payroll Tax Penalty can be imposed. To make matters worse, the penalty can be assessed personally against a “responsible individual.” If a business makes payroll tax payments late, there are escalating penalties. And if an employer fails to make them, the IRS will crack down hard. With the “Trust Fund Recovery Penalty,” also known as the “100% Payroll Tax Penalty,” the IRS can assess the entire unpaid amount against a responsible person who willfully fails to comply with the law. Some business owners and executives facing a cash flow crunch may be tempted to dip into the payroll taxes withheld from employees....