Lake Corporation has severe cash-flow problems. You are the company's financial and tax consultant. The treasurer of the company informed you that the company has failed to make FICA and federal income tax withholding payments to the IRS (both the employer and employee contributions) for a period of approximately six months. Requirements a. What advice can you give to the company treasurer regarding the nonpayment of taxes? b. Can the liability for payment of the taxes extend to parties other than the corporation? Explain. a. What advice can you give to the company treasurer regarding the nonpayment of taxes? A. It is optional that the corporation forward FICA and federal income tax withholding to the IRS. The IRS will forgive nonpayment of a business having cash-flow problems one time. B. It is important that the corporation forward FICA and federal income tax withholding to the IRS. Penalties could be assessed, but most likely will not if they pay promptly. C. It is vital that the corporation forward FICA and federal income tax withholding to the IRS. Penalties must be imposed if Lake fails to pay these amounts to the IRS. D. It is important that the corporation forward FICA and federal income tax withholding to the IRS. Penalties will be assessed to the employees if the taxes are not paid promptly