According to a Department of Justice press release, a Georgia businessman was recently sentenced to serve two years in prison after being convicted of tax crimes related to failing to pay over-withheld employment taxes. This story echoes many of our recent blog posts about the importance of complying with employment tax laws. If you have failed to comply with federal or state laws related to payroll taxes or have failed to file other business or individual tax returns, it is in your best interest to contact an experienced tax defense attorney to get you right with the government.
Defendant Failed to Remit Over $10 Million to IRS
This story is an update from a story that we brought you in 2021. If you recall from our previous blog post reporting on this story, between 2009 and 2018, Douglas Mittleider was responsible for running various long-term care facilities throughout the U.S. His duties included payroll and 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 withholding, 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.
In addition to being sentenced to serve two years in federal prison, Mittleider was also ordered to serve one year of supervised release, commencing at the completion of his prison term. Additionally, Mittleider was ordered to pay over $17 million of restitution to the United States, representing the amount of tax loss he caused the IRS.
Working With a Tax Attorney to Get Right with the Government
We strive to impress upon our readers the importance of complying with federal employment tax laws. Employers (including those who are simply responsible for administering the payroll function of a business) are responsible for withholding, accounting for, and remitting payroll taxes in a timely manner. Because the government largely relies on withholding from employees’ pay to fund the government, it should come as no surprise that those who violate employment tax laws are prosecuted to the fullest extent of the law. Further, federal prosecutors often seek lengthy prison sentences for those convicted of employment tax evasion.
If you have failed to properly account for or remit amounts withheld from employees’ paychecks, as required by law, you should consult with a seasoned tax lawyer. Together, you will discuss the pertinent facts of your case and determine the best route to bring you into tax compliance. Those who proactively attempt to rectify their tax noncompliance have more favorable outcomes than those who attempt to evade IRS collection efforts and make false statements during investigations. Having an experienced tax attorney on your side will help ensure you do not make those mistakes.
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 fully staffed main office in downtown Irvine California, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) California-based satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad, Sacramento. We also have unstaffed (conference room only) satellite offices in Las Vegas, Nevada; Salt Lake City, Utah; Phoenix, Arizona & Albuquerque, New Mexico; Austin, Texas; Washington, DC; Miami, Florida; and New York that solely handle Federal & California Tax issues.
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