“Pyramiding” is a term the IRS uses to describe the situation where a business has fallen behind in paying over its employment taxes and is continuing to accumulate (“pyramid”) federal tax liabilities beyond its ability to pay. Due to the accrual of interest and penalties on the older years, the older years tend to be larger liabilities, with each subsequent year being smaller than the one before it. Thus, the trend of accruing liabilities can be said to resemble a pyramid.

If you need assistance dealing with the IRS on employment tax issues, you can contact the Wilson Tax Law Group at (949) 397-2292.