An employee’s larceny doesn’t void a penalty for undeposited payroll taxes in this case. After the company’s owner learned about the embezzlement and that the taxes were unpaid, he had the firm pay part of its liability to IRS and he loaned the business money for the specific purpose of paying its workers.
Because he willfully caused his firm to pay salaries in lieu of the Revenue Service, he is personally liable for the remaining delinquent taxes
McClendon, D.C., Tex.