As tlrobinson and jacquesm noted, I certainly didn't mean to imply that YC in any way supports companies not paying payroll taxes -- as I advise in the post, companies shouldn't cut corners when it comes to that stuff.
It's ironic to me that payroll taxes (which theoretically exist for the employee's benefit) have forced a promising and growing company to lay off staff. Have you tried hiring a tax attorney to negotiate with the IRS? Often they will waive some of the penalties and allow payment plans.
