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According to a Department of Justice press release, a Montana business owner recently pleaded guilty to intentionally failing to pay over employment taxes that were withheld from the paychecks of his employees and due to the IRS. As we have indicated in the past, the IRS and the Department of Justice is particularly sensitive when it comes to taxpayers who fail to live up to payroll-related tax obligations. If you have failed to comply with federal or state payroll tax laws, it is in your best interest to contact an experienced tax defense attorney today to plot a course to tax compliance.
Court records reveal that Trennis Baer was the owner and operator of Baer Construction based in Great Falls, Montana. Between 2010 and 2018, Baer caused payroll taxes to be withheld from his employees’ paychecks but failed to pay over those funds to the IRS as required by federal law. Baer’s accountant filed the necessary tax returns relating to the payroll taxes and notified Baer of his liability to pay, but the obligation fell on deaf ears.
In addition to failing to properly pay over withheld payroll taxes, Baer failed to file tax returns for several years. IRS investigators indicated that in 2006, 2008, and from 2010 through 2018, Baer failed to file an individual tax return reporting his wage and business income. Combined with his intentional disregard for his company’s payroll tax obligations, Baer’s illegal actions caused an estimated tax to the IRS of more than $1.5 million.
Baer’s sentencing was set for January of next year. He faces up to five years in a federal prison and may be sentenced to serve an additional term of supervised release upon the completion of his physical incarceration. Finally, Baer will likely be ordered to pay the IRS restitution representing the loss of tax revenue that he caused
Payroll taxes, including amounts that are withheld from a taxpayer’s wages, make up a large share of the tax revenue collected by the IRS on an annual basis. It is no surprise that when taxpayers intentionally fail to comply with laws related to the withholding, proper accounting of, and remittance of payroll taxes, the IRS and Department of Justice treat the matter with utmost seriousness.
If you have failed to properly withhold, account for, or pay over payroll taxes, or have failed to file tax returns for one or more years, it is in your best interest to contact an experienced tax defense attorney to come into compliance. The sooner that you address your tax shortcomings, the better. The IRS is keenly aware that Americans routinely fall behind on their taxes. To address this, they have established multiple programs that you, with the help of your tax attorney, can utilize to get right with the government.
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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