IRS is requesting back payroll taxes but we had no employees. How do I resolve this?

Question

Back in 2002 my ex husband and i had a LLC business. We separated in Aug 02 and no longer had employees. Due to his lack of bookkeeping and failing to file taxes, the IRS has determined that we owe over $4k in payroll taxes for '02. We have been assigned a Revenue Officer but he is not nice at all. Is there a way to prove to the IRS that we did not have employees and thus no longer owe payroll taxes?

Answer 1

What kind of business structure was the LLC under?

Partnership, no employees, but you would owe SE tax on the 1040.
C or S corporation, the payroll tax is based on the two of you since owners who provide services to the corporation must be paid a "reasonable" salary.

Answer 2

You may need to have representation or you can appeal the ROs findings.  

Prove you did not have any employees and you are golden.

If you need a pro, go to www.naea.org

Helen, EA in PA

Answer 3

find the former employees and have them write an affidavit of when they ceased being employees.
they are asking for tax payment for the time you say you had employees.