According to a Department of Justice press release, Kevin Alexander, owner of K&L Construction, Inc., a landscaping and construction company in Sergeant Bluff, Iowa recently pleaded guilty to tax evasion for evading payment of his company’s employment taxes. This story illustrates the potential repercussions that can result from failing to comply with federal employment tax laws. If you have failed to properly withhold, account for, and remit employment taxes, you should contact an experienced tax defense attorney to determine the best strategy to bring you into tax compliance or attempt to fend off criminal tax charges.
According to court documents and statements, Alexander, as the sole shareholder and president of K&L Construction, was responsible for filing quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from employees’ wages.
From the second quarter of 2014 through the first quarter of 2017, K&L Construction paid approximately $3.8 million in wages to its employees and withheld approximately $1 million in payroll taxes, but the company did not pay over any of these withholdings to the IRS. During IRS collection proceedings, Alexander accepted responsibility for paying K&L Construction’s outstanding tax balance. Alexander, however, submitted a false form to the IRS that concealed some of his assets. As part of his plea agreement, Alexander admitted that he submitted the false form for the purpose of concealing assets and evading payment of K&L Construction’s outstanding payroll tax liability.
Alexander is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution, and monetary penalties.
This case serves as a reminder of the serious consequences that can result from failure to comply with tax laws. At the Tax Law Offices of David W. Klasing, we understand the importance of staying compliant with employment tax laws and coming back into compliance when you fail to comply. If you have failed to withhold employment taxes from the paychecks of your employees, or have failed to properly account for or remit funds you have withheld, you should contact an experienced tax defense attorney to determine the best strategy to get right with the government.
Regardless of your particular 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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