According to a Department of Justice press release, a Florida man was recently charged with failing to properly comply with federal employment tax laws. This story illustrates the potential negative consequences that can flow from a federal criminal employment tax investigation and conviction. If you have fallen behind on your employment tax obligations or otherwise have failed to file employment or income tax returns, it is in your best interest to consult with an experienced criminal tax defense attorney.
Defendant Allegedly Withheld Taxes from Employees’ Checks but Failed to Remit Funds to IRS
Paul Walczak, a resident of Palm Beach Gardens in Florida, has been indicted by a federal grand jury in Miami for allegedly failing to pay employment taxes and file personal income tax returns. Walczak owned multiple health care companies, including NuVista, Palm Health Partners, and PHP Employment Services LLC, from 2009 to 2019. Walczak is accused of not paying more than $6 million in employment taxes to the IRS from 2016 to 2019. The indictment states that Walczak was responsible for withholding federal income, Social Security, and Medicare taxes from his employees’ wages.
The indictment also alleges that from 2016 to 2018, Walczak received a yearly salary of at least $360,000 from his health care companies and received significant wire transfers from them. However, instead of paying the withheld funds to the IRS, Walczak used the money to invest in his businesses, purchase a yacht, lease luxury vehicles, and charter private international flights.
Moreover, the indictment accuses Walczak of not filing personal income tax returns for 2018, 2019, and 2020. If found guilty, Walczak could face a maximum of five years in prison for each employment tax count and one year for each count of failing to file a tax return. Additionally, he could be subject to a period of supervised release, monetary penalties, and restitution.
Come Into Employment Tax Compliance with the Help of an Experienced Tax Attorney
The defendant’s indictment underscores the serious consequences of failing to fulfill tax obligations and committing tax-related crimes. If convicted, Walczak could face significant prison time, hefty fines, and other penalties. Such legal consequences could not only impact Walczak’s personal and professional life but also tarnish his reputation and damage his businesses. If you have fallen behind on your payroll tax obligations, you should contact an experienced criminal tax defense attorney to establish a strategy to bring you back into compliance. Together, you will determine the pertinent facts of your case and agree on the next steps forward.
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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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