According to a Department of Justice press release, a Maryland man was recently indicted for violations of employment tax law after federal prosecutors allege that he withheld taxes from employees but failed to pay those taxes over to the IRS. Employers are required to withhold, account for, and remit payroll taxes from the paychecks of their employees, and the repercussions for failing to do so can be severe. If you have failed to comply with payroll tax laws, failed to file a business or individual income tax return for one or more years, or have filed a tax return containing information that could not be supported upon examination, it is in your best interest to seek assistance from an experienced tax defense attorney
Defendant Allegedly Failed to Pay Over $900,000 in Payroll Taxes
Court records reveal that Brett Hill, of Parkton, Maryland, was the owner and operator of two telecommunications companies. Federal prosecutors allege that Hill withheld employment taxes from the paychecks of his employees, as required by federal law. But instead of accounting for those withheld funds and paying them over to the IRS, Department of Justice prosecutors allege that Hill kept the funds.
If Hill is convicted, he could be sentenced to serve up to five years in federal prison for each of the 16 counts of willful failure to collect or pay over employment taxes. The defendant may also be sentenced to serve a period of supervised release, to commence upon the completion of any physical incarceration. Lastly, the defendant may be ordered to pay restitution, representing the tax loss suffered by the IRS.
Correcting Past Tax Mistakes Before an IRS Criminal Tax Investigation
U.S. employers are required by federal tax law to withhold certain taxes from the paychecks of their employees. Deductions from the paychecks of American workers serve as the largest single source of tax revenue for the IRS. Thus, it should be no shock that the IRS and the Department of Justice take violations of laws surrounding payroll tax withholding, accounting, and remittance seriously.
If you have failed to comply with federal payroll tax laws, failed to file a business or individual income tax return for one or more years, or have filed a false tax return containing understated income or overstated deductions, it is in your best interest to consult with an experienced tax defense attorney. Together, you will work with your seasoned tax attorney to establish the pertinent facts of your case. Then, you will mutually agree on the next steps to bring you into tax compliance while attempting to minimize civil and criminal repercussions commonly observed in serious tax disputes.
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 main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento.
Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client.
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
