According to a Department of Justice press release, a Montana business owner recently pleaded guilty to intentionally failing to pay over employment taxes that were withheld from the paychecks of his employees and due to the IRS. As we have indicated in the past, the IRS and the Department of Justice is particularly sensitive when it comes to taxpayers who fail to live up to payroll-related tax obligations. If you have failed to comply with federal or state payroll tax laws, it is in your best interest to contact an experienced tax defense attorney today to plot a course to tax compliance.
Defendant Intentionally Failed to Pay Over Payroll Taxes to the IRS
Court records reveal that Trennis Baer was the owner and operator of Baer Construction based in Great Falls, Montana. Between 2010 and 2018, Baer caused payroll taxes to be withheld from his employees’ paychecks but failed to pay over those funds to the IRS as required by federal law. Baer’s accountant filed the necessary tax returns relating to the payroll taxes and notified Baer of his liability to pay, but the obligation fell on deaf ears.
In addition to failing to properly pay over withheld payroll taxes, Baer failed to file tax returns for several years. IRS investigators indicated that in 2006, 2008, and from 2010 through 2018, Baer failed to file an individual tax return reporting his wage and business income. Combined with his intentional disregard for his company’s payroll tax obligations, Baer’s illegal actions caused an estimated tax to the IRS of more than $1.5 million.
Baer’s sentencing was set for January of next year. He faces up to five years in a federal prison and may be sentenced to serve an additional term of supervised release upon the completion of his physical incarceration. Finally, Baer will likely be ordered to pay the IRS restitution representing the loss of tax revenue that he caused
Coming into Compliance with Payroll Tax Laws and Income Tax Filing Requirements
Payroll taxes, including amounts that are withheld from a taxpayer’s wages, make up a large share of the tax revenue collected by the IRS on an annual basis. It is no surprise that when taxpayers intentionally fail to comply with laws related to the withholding, proper accounting of, and remittance of payroll taxes, the IRS and Department of Justice treat the matter with utmost seriousness.
If you have failed to properly withhold, account for, or pay over payroll taxes, or have failed to file tax returns for one or more years, it is in your best interest to contact an experienced tax defense attorney to come into compliance. The sooner that you address your tax shortcomings, the better. The IRS is keenly aware that Americans routinely fall behind on their taxes. To address this, they have established multiple programs that you, with the help of your tax attorney, can utilize to get right with the government.
We Are Here for You
Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.
In addition to our main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.
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Questions about delinquent payroll taxes and trust fund recovery penalty
- What happens if an employer continues to incur new payroll tax liabilities?
- California Employment Taxes Basics
- How Does the IRS Develop an Employment Tax Fraud Case from the First Indication of Fraud to a Criminal Indictment?
- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
- When a corporate officer is considered a responsible party
- Examples of trust fund recovery penalty determinations
- Failing to pay employment taxes after notice is given
- How to determine responsible person for trust fund recovery
- Assessing trust fund recovery penalty and option to appeal
- What is the trust fund recovery penalty?
- What are the penalties for failure to pay employment taxes
- When am I considered liable for company’s employment taxes
Questions and Answers on Unfiled Back Taxes
- What are the common issues that non-filers face?
- Risk of audit after filing delinquent prior year returns
- Can substitute return deficiency be discharge in bankruptcy
- Substitute return modified by subsequent delinquent return?
- Do I file every delinquent return for each missing year?
- How does the IRS identify non-filers?
- How important is it to the government that I didn’t file?
- Delinquent tax return criminal prosecution likelihood
- Will I get a refund on a delinquent tax year?
- What happens after enforcement action has begun?
- Should I use an attorney, EA or a CPA to represent me when I re-enter the tax system?
- Why do people drop out of the tax system?
- What happens after the IRS identifies me as a non-filer?
- IRS has not previously filed substitute returns
- Tax attorney representation when re-entering tax system
- How will the government force me to file returns?
- What penalties can IRS impose on delinquent tax filings?
- What should I do to re-enter the tax system?
- Can Law Office of David W. Klasing help me re-enter system?
- Will tax collection taken by authorities affect my credit
- I concealed bank accounts from the government
- Forgetting or failing to file tax return
