According to multiple local news outlets, three San Francisco-area restaurant owners were recently charged with tax evasion and theft related to their alleged failure to pay required state taxes and theft of employee wages. This story should remind business owners that the payment of employment-related taxes, as well as the payment for the labor itself, is not optional. Life-changing repercussions may await those who fail to comply with California and federal tax and labor laws. If you have failed to properly comply with state and federal employment or income taxes for one or more years, it is in your and your business’s best interest to contact an experienced tax defense attorney to assist in coming back into tax compliance.
Defendants Allegedly Stole from Employees, Failed to Pay Taxes
California Attorney General Rob Bonta recently announced that David Tai Leung, 60; Sunny Siukeung Chan, 60; and Wendy Lai Ip, 55, have been charged with a combined 65 counts related to their alleged illegal activity. The three defendants each have a hand in operating one of three seafood restaurants in the Bay Area of Northern California. The charges include failure to pay unemployment insurance, failure to pay disability insurance, failure to pay income tax, tax evasion, and the theft of the labor of its employees.
A trial date for the three defendants has not yet been set. If convicted on all counts, the combined prison sentence could span several decades. Additionally, financial sanctions such as penalties, back taxes, interest, and other restitution could prove to be a life-changing financial detriment to the defendants.
Complying With California and Federal Tax Law
California law, as well as the laws of the United States, require employers to pay certain taxes related to the employment of labor. Additionally, federal and state employment tax laws require employees to withhold and pay over certain taxes to tax authorities. When businesses fail to comply with these tax laws, not only the business is at risk. For instance, under federal law, any individual with the responsibility to oversee the payroll function is responsible civilly and criminally for intentional wrongdoings. Although complying with federal and state payroll-related laws can sometimes be burdensome, the repercussions for failing to do so are even more burdensome and could be life-altering.
If you own a business or are responsible for the payroll function of a business and have not filed the necessary returns or paid the required taxes related to the employment of labor, you should contact an experienced tax defense attorney to determine your level of exposure and determine the best strategy to get you and your business right with the government. Working with a seasoned tax attorney, you won’t have to go up against the IRS alone and can spend more time with friends and family.
We Are Here for You
Regardless of your particular 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.
Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords, and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.
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
