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Business Owner Faces Prison After Pleading Guilty to Employment Tax Crimes

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Business Owner Faces Prison After Pleading Guilty to Employment Tax Crimes

As a business owner, it's important to understand and follow all employment tax laws. Failure to do so can result in serious consequences, as one Michigan business owner recently learned. Yigal Ziv, owner of software developer company Multinational Technologies, Inc., pleaded guilty to willful failure to collect and pay over employment taxes on behalf of his employees. If you have failed to properly withhold, account for, or pay over employment taxes, it is in your best interest to speak with an experienced tax defense attorney.

Defendant Pleaded Guilty to Collecting Substantial Amounts of Withholding Tax Without Remitting the Funds to the Government

According to court documents, Ziv was responsible for filing MTI's quarterly employment tax returns and paying the IRS the payroll taxes withheld from employees' wages. However, from 2014 to 2018, Ziv collected approximately $691,000 in employment taxes but did not file employment tax returns or pay the withheld taxes to the IRS. Even after learning of the IRS's criminal investigation in 2018, Ziv did not file MTI's employment tax returns or pay the withheld taxes to the IRS, totaling approximately $199,000. During this time, Ziv also used MTI's funds for personal expenses, including mortgage payments and luxury auto lease payments. Ziv faces a maximum penalty of five years in prison and a period of supervised release, as well as monetary penalties and restitution.

Seeking Assistance from an Experienced Tax Defense Attorney

This case serves as a reminder of the importance of understanding and following employment tax laws. It's crucial for business owners to accurately file and pay employment taxes on behalf of their employees to avoid legal consequences. If you're a business owner and have questions about employment taxes, consider seeking the assistance of a skilled employment tax law firm. Our tax law professionals can help ensure that you're in compliance with all relevant laws and help avoid any potential legal issues. Don't take unnecessary risks with your business – make sure you have the knowledge and resources you need to properly handle employment and other taxes.

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.

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