Call Now (800) 681-1295
Close

New Jersey Attorney Sentenced to Serve a Year in Prison for Payroll Tax Violations

Table of Contents

    According to a Department of Justice press release, a New Jersey law firm partner was sentenced to serve a year in prison for failing to pay over payroll taxes that were withheld from his employees for tax quarters ending on March 31, 2016 and June 30, 2016. This story is a stark reminder that the IRS treats payroll tax compliance with the utmost importance and taxpayers should seek assistance from an experienced payroll tax defense attorney as soon as possible if they believe they are at risk for examination, criminal investigation, or prosecution.

    See our Employment Tax Law Q and A Library

    Law Firm Partner Withheld but Failed to Pay Over Payroll Taxes to the IRS

    Court documents reveal that last year, George Gilmore, of Toms River, New Jersey, was convicted by a federal jury on two counts of failing to pay over payroll taxes, as required by federal law. For the two quarterly periods identified above, Gilmore properly withheld payroll taxes from his law firm’s employees but failed to pay such amounts over to the IRS. Business owners and those in charge of payroll functions are required by federal law to withhold, properly account for, and pay over payroll taxes to the IRS.

    In addition to the 365-day prison sentence, Gilmore was also sentenced to three years of supervised release, which will commence at the conclusion of his physical incarceration. Most individuals who are convicted of tax crimes, including payroll tax law violations are ordered to pay restitution to the IRS.

    The Importance of Payroll Tax Compliance

    As we have indicated many times before, payroll tax compliance is one of the most important areas of enforcement undertaken by the IRS. This is primarily because payroll tax provides the IRS with the vast majority of its tax revenue. Tax withholdings make up most of what a taxpayer pays each year in federal and state income taxes.

    Although the idea of payroll tax and the fact that employers must comply with laws surrounding it is not complex, but there are situations where payroll tax compliance can become complex. For instance, employers with a workforce that they consider to be independent contractors may be at risk for a worker classification audit. In such an audit, the IRS determines whether they agree that a particular employee, or a group of employees, are actually independent contractors, or if instead, they are employees (requiring payroll taxes to be withheld and remitted).

    Whether you are a business owner or an employee at a business who is responsible for the payroll tax withholding function, it is critical that you understand and appreciate the requirements placed upon you by federal law. If you have concerns about payroll tax noncompliance or are unsure about the tax treatment of your workforce, it is in your best interest to contact an experienced tax attorney as soon as possible. Your tax defense lawyer will work to understand your particular set of facts and offer a variety of solutions to mitigate any potential negative repercussions that payroll tax noncompliance can cause.

    Contact an Experienced Tax Attorney Today

    The tax and accounting professionals at the Tax Law Offices of David W. Klasing have extensive experience representing a diverse group of taxpayers. From individuals to middle market businesses and beyond, our team of zealous advocates will assist in the development of a strategy to help you reach your specific goals and objectives. Whether you are under a tax examination or are in need of tax planning advice, contact the Tax Law Offices of David W. Klasing today, online or by phone at (800) 681-1295, for a reduced-rate consultation.

    Here is a link to our YouTube channel: click here!

    In addition to our staffed main offices 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.

    Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship.  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. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.

    Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company?  Absolutely not!  See our policies that address this issue here.

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    tax lawyers

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    Arizona
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    Texas
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    Nevada
    (702) 997-6465
    Florida
    (786) 999-8406
    Utah
    (385) 501-5934