Rule: The IRS shuts down businesses that cannot pay employment taxes.
All the IRS wants is money!
The Internal Revenue Service does not care if closing down your business will throw your employees out if work. This argument will get you nowhere fast! In fact, by shutting-down your business the Revenue Officer gets credit for being an aggressive employee of the IRS.
The government's purpose of employer withholding is to force money from the employer so most people do not see how much is really being taken from them in taxes. They do not care about a higher purpose of producing more or keeping the economy going!
If your business cannot make payroll taxes, the IRS assesses the 100% Penalty (now euphemistically called the Trust Fund penalty) against the owners and officers. In addition to attacking the owners and officers, the IRS will assess check-signers and other so-called Responsible Persons even if they are not owners nor executives of the business! The government has further stacked the deck in their favor by prohibiting indiviuals from discharging in Bankruptcy trust fund withholding taxes.
If your business has past due 941 tax returns, or owes 941 taxes, DO NOT WAIT FOR THE IRS TO LEVY YOUR BANK ACCOUNTS!