In U.S. v. DeMuro the Federal 3rd Circuit Court of Appeals upheld the conviction of husband and wife engineers for the failure to pay employment taxes. The business owners failed to pay $500k in taxes and penalties and the IRS attacked. They were found guilty and sentenced to more than 4 years prison. The Appeals Court confirmed the conviction. The sentence will be reviewed by the District Court.
Once again, this shows the exceptionally aggressive position by the IRS in attacking small business owners that cannot pay all of the payroll taxes. Many States are also criminally prosecuting business owners for payroll tax claims.