I'm not seeing a lot wrong with that story except for the stuff that someone recalling what happened when they were 11 years old probably didn't understand and, therefore, didn't include.
For example, the writer describes how the IRS entered their home and seized stuff. Yeah, that can happen but it's incredibly rare. A federal judge has to sign a writ of entry in order for Revenue Officers to enter a home to conduct a seizure. You could probably count on one hand the number of those that have been issued in each of the last 6 decades.
No officer goes to that much trouble unless there's something really, really bad happening.
I'd bet $100 in a heartbeat that his dad was in contravention of IRC 6672 and, without going into all the details, that means the IRS came down on his dad like a ton of bricks only after his dad spent a very long time looking the other way while his business fraudulently stole money from his 55 employees. Those 55 employees are paying the price for his dad's stupidity, too.
How many times have we agreed around here that stupidity should hurt? This is a pretty good example of that in action.