The revenue officer always calls first

Undeposited payroll taxes pile up so quickly, the IRS has a special name for it: pyramiding. Pyramiding is of such a concern to the IRS that it used to send revenue officers, unannounced, to employers falling behind on their deposits. A recent memo from the IRS’ Small Business/Self-Employed Division outlines the new procedure for ROs who are pursuing failure-to-deposit penalties.