In the recent past, the IRS has increased its scrutiny for payroll tax remittance.
The scrutiny is set to get to employers who collect taxes from employees and fail to remit the taxes in a timely manner.
According to report released by the Treasury Inspector General for Tax Administration (TIGTA) in 2011, payroll taxes of about $54 billion are not paid to the IRS every year.
The amount is especially high in tough economic times as is currently experienced in the U.
S.
Now, due to the extent of defaulting by employers, the IRS is taking extra measures to deal with this non compliance.
Some of the ways that the IRS is using to get to the non compliant employers is by taking a random sample of employers and carrying out a payroll tax audit.
If the IRS gets to an employer who has failed to remit collectable taxes, it may seek both civil and criminal charges against the employer.
Some of the consequences of non remittance of payroll taxes are provided below:

• Collect Back Taxes and Penalties - Once the IRS has gotten to a defaulting employer, they will seek recovery of back taxes, penalties, and interest for unpaid taxes.
  Penalties for non remittance of payroll taxes can be quite high and can easily push an organization out of business.
  
• Seek Recovery from Responsible People - The IRS can seek recovery of unpaid taxes plus penalties and interest from either the business or from responsible officers.
  This means that the IRS can seek recovery from even an employee whom they feel is responsible for the non remittance.
  Other responsible individuals who would be pursued to pay for the non-remitted taxes include the owners of the business or organization, the book keepers, the treasurer, or even creditors of the business who would have control over the business account and who would be prioritizing their debt recovery at the peril of remittance of payroll taxes.
  
• Seek Extra Penalties for Pyramiding - Pyramiding is a term used to refer to employers using payroll taxes as working capital either temporarily or for a long period of time.
  In other words, employers collect taxes and use the funds to pay other expenses or buy stock and thereby using tax money for profit.
  Even if the business does eventually remit taxes and pay the required interest and penalties, the IRS can still seek further penalties for using their money in your business transactions.
  This cost may come over and above the regular penalties.
  
• Pursue Criminal Charges - Besides civil consequences, the IRS may also pursue criminal charges.
  Business owners who have been found guilty of embezzling collected payroll taxes have paid fines and even been sentenced jail terms.
  

Non remittance of payroll taxes has such dire consequences and it may not be worth it.
Therefore, if you are an owner, an accountant, book keeper, or have any responsibility for the collection or remittance of payroll taxes, it is prudent to ensure that such collected taxes are paid in within the required deadlines.