According to a Department of Justice press release, a former business owner was indicted by a federal grand jury on eleven counts of willfully failing to account for and pay over employment taxes to the IRS. This underscores what we have long preached on this blog: the government takes employment tax obligations more seriously than nearly any other single type of tax. If you have failed to comply with federal employment tax laws or have not filed a tax return for one or more years, it’s imperative to discuss your situation with an experienced employment tax defense attorney.
Defendant Allegedly Failed to Remit Over $1 Million in Withheld Taxes to the IRS
Court records reveal that Mari Ross-Alexander, of Columbia, South Carolina, was the owner and president of Ross Behavioral Group, a mental health counseling center with multiple locations in Middle Tennessee. From at least 2011 through 2023, Ross-Alexander controlled the company’s financial affairs and was responsible for withholding Social Security, Medicare, and federal income taxes from employees’ wages and paying them over to the IRS. However, from at least 2015 through 2020, she allegedly withheld these taxes but did not pay them to the IRS.
Each year during this period, Ross-Alexander issued W-2s and paystubs to employees that showed taxes being withheld, falsely insinuating that these amounts were being remitted to the IRS. In total, she is alleged to have caused a tax loss of more than $1 million to the IRS.
Ross-Alexander faces a maximum penalty of five years in prison per count. Additionally, if convicted, she faces a period of supervised release, to commence upon the end of any physical incarceration. Lastly, she faces restitution, which represents the tax loss that she allegedly caused.
The Importance of Addressing Tax Issues with a Seasoned Tax Attorney
As we mentioned earlier in the story and have mentioned countless times over the past decade, the IRS gets most of its tax revenue from amounts withheld from employees’ paychecks. Thus, it is no surprise that when there are allegations that an employer or someone else who is responsible for that process at a company has failed to comply with federal law, the consequences can be severe. If you have failed to withheld, account for, and remit employment taxes, as required by law, you should consult with an experienced tax attorney who has dealt with employment tax disputes.
