by tro » Thu Oct 28, 2010 5:52 am
payroll taxes are very, very serious since they are considered trust monies
you withheld monies from your employees which apparently you never paid and that is considered embezzlement
you also apparently did not file and pay your quarterlies on your employees and that is fraud as well
I am assuming a good portion of the $125000 is interest and penalties, but didn't you file your quarterly employee reports when you should?
if not get them done and find out what your actual liability is and you might be able to work with IRS to lessen the hit