A growing business redirected payroll tax funds to cover operating expenses during a slow quarter, intending to catch up later. Months passed without corrective action. The result was a federal tax lien, followed by levies that impaired the company’s ability to meet payroll and vendor obligations. 

My Findings

Financing options disappeared overnight. 

Outcome

Ultimately, the business downsized significantly—not due to lack of demand, but because unresolved tax debt undermined credibility and cash flow.