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Construction cash flow is unpredictable.

Construction cash flow is unpredictable.

Retainage delays.Slow-paying GCs.Material spikes.Seasonal swings.

So contractors “float” payroll taxes.

That’s where it gets dangerous.

If you owe:

Under $10k → Usually manageable$10k–$50k → Installment plans availableOver $50k → Revenue officer assigned

But payroll taxes?There is no safe threshold.

The IRS can:• File liens• Levy bank accounts• Seize receivables• Assess Trust Fund Recovery Penalties (personal liability)

I’ve seen owners ignore notices for months — then panic when a revenue officer shows up at the job site.

Here’s what the IRS cares about:• Are you current now?• Are you compliant?• Are you cooperating?

Silence is what triggers escalation.

If you’re behind, the worst move is waiting.

The earlier you fix it, the more control you keep.