According to a Department of Justice press release, a California business owner was recently sentenced to prison after convictions related to employment taxes. This story highlights the importance of complying with federal tax laws. If you have failed to comply with federal employment taxes, or have failed to file a tax return altogether, it is in your best interest to contact an experienced tax defense attorney to discuss your options to come into tax compliance.
Defendant Failed to Pay Over Employment Taxes
According to court records, Larry Kudsk from Berkeley, California, managed two construction firms, named Kudsk Construction, Inc., and M. Gutierrez, Inc. These companies acted as both main contractors and subcontractors, even for certain government projects. Kudsk had the obligation of submitting quarterly employment tax returns and making sure the payroll taxes deducted from employees’ wages were remitted to the IRS. However, he failed to do so for M. Gutierrez, Inc. in 2014 and the final three quarters of 2015, and for Kudsk Construction, Inc. throughout 2016. His actions led to a tax loss of over $250,000 to the IRS.
In addition to being sentenced to serve one year in prison, U.S. District Judge Jeffrey S. White dictated that Kudsk must also undergo three years of supervised release. He was further ordered to pay back an estimated amount of $244,973 in damages to the United States government.
Coming Into Compliance with a Seasoned Tax Attorney
As evidenced by the story above, failing to comply with federal income tax laws, particularly employment tax requirements, can result in significant penalties, including jail time. Federal law requires that employers faithfully withhold tax from employees’ paychecks and remit those funds to the IRS. Those employers who fail to do so can find themselves in a serious predicament.
If you have failed to comply with federal employment tax laws or have failed to properly file a tax return for one or more years, it is in your best interest to contact an experienced tax defense attorney to determine the best strategy to bring you into compliance. Together, you and your seasoned tax attorney will work to determine the pertinent facts of your case and devise a roadmap to help ensure your physical and financial freedom.
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.
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