Payroll taxes

• When you're an employer, you are legally required to pay a payroll tax. A payroll tax is the withholding you must take from your employees for FICA, state and federal taxes. As an employer you are also required to match the FICA tax, and this is where potential problems can arise. If you fail to withhold the correct amount or fail to match the amount paid by your employees, you are in violation of IRS tax code.
  
  

Tax Levy

• When the IRS issues a tax levy, they attach it to your checking or savings account and withdraw money in an attempt to collect on your tax debt. Once attached, the levy removes any money in those accounts up to the owed amount. This presents several obvious problems, as this is can disrupt your personal cash flow.
  
  

Audits

• An IRS tax audit occurs when the IRS sees a discrepancy between the information you filed on your tax return and the money you paid--and what they see as the proper amount. If the IR suspects a serious error, or that you are withholding information or money, they can audit you for that time period. During an audit, the IRS can request any financial documents pertaining to the time period of filing in question.
  
  

Wage Garnishment

• In an attempt to collect on a debt owed to the government, the IRS can garnish your wages. This means that they can take a percentage of your paycheck each week or month, and they receive it from your employer. This percentage is usually a negotiated or stated amount, as the IRS is required to give you prior warning.
  
  

Tax Lien

• A tax lien most commonly occurs when the IRS is attempting to collect back taxes. Tax liens are applied to your personal property or business, and you will be unable to sell or transfer ownership of this property until your back taxes are paid off. Although it differs state to state, the IRS usually has the ability to seize the aforementioned property if the back taxes are not paid by a stated date.