Personal Liability

• When a business declares bankruptcy, the owners and co-owners are held personally liable for payroll taxes, according to All Business. The IRS may seize personal assets, such as real estate, automobiles and personal bank accounts, to obtain the amount owed.
  
  

Installment Plans

• You may be able to obtain an installment plan from the IRS if you owe less than $25,000. However, the interest can be anywhere from 8 to 10 percent per year, according to All Business. Also, to obtain a payment plan on back taxes, you must be current on your own annual taxes.
  
  

Offer in Compromise

• You can also ask the IRS to reduce the amount you owe. This is referred to as an "offer in compromise." This will require a $150 application fee and filing Form 656.