According to a Department of Justice press release, a Georgia businessman was recently indicted on charges relating to failure to pay employment taxes and obstructing the IRS after allegedly racking up a $10,000,000 employment tax debt. The IRS and Department of Justice treat tax crimes related to employment taxes very seriously. If you have failed to comply with federal or state employment tax withholding laws, it is in your best interest to contact an experienced tax defense attorney as soon as possible to discuss your options to come into compliance.
Defendant Indicted After Allegedly Failing to Pay Over $10,000,000 of Withheld Employment Taxes
Court documents reveal that between 2009 and 2018, Douglas Mittleider was responsible for running various long-term care facilities throughout the U.S. His duties included payroll and the related employment tax withholding compliance. Although his employees had amounts withheld from their paychecks, Mittleider is alleged to have failed to pay over such taxes. By the end of 2018, prosecutors estimate that Mittleider amassed a tax debt of over $10,000,000 related to withheld, but not remitted, employment taxes. Prosecutors allege that instead of remitting the withheld amounts, he filed false employment tax returns and directed the money to his family members, rather than the IRS.
If convicted, Mittleider faces up to three years in federal prison for the obstruction charge. Additionally, he faces up to five years in prison for each count of failing to pay employment taxes. Mittleider may also face a term of supervised release and may be required to pay restitution to the IRS, representing the tax loss that he caused. Mittleider’s initial court appearance will be later this year.
Working with a dually licensed Tax Attorney & CPA to Come into Employment Tax Compliance
As we have indicated in several other blogs on the matter, employment tax withholdings represent one of the primary methods the government collects tax revenue. When business owners or those who are otherwise responsible for the administration of a company’s employment tax compliance fail to follow the law, the Department of Justice does not hesitate in seeking swift and heavy justice.
But it is not all doom and gloom. If you have fallen out of employment-related tax compliance by either failing to withhold from your employees’ paychecks or by failing to remit amounts withheld, working with an experienced tax attorney can help. Together, you and your seasoned tax attorney will establish the pertinent facts of your case, identify your exposures, and develop a roadmap to bring you into compliance and reduce or eliminated any criminal tax exposure. Best of all, you will not have to go up against the IRS alone while you are being represented by a tax attorney.
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
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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