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According to a Department of Justice press release, a New Jersey man was sentenced by a federal judge to serve a year and a day in prison for intentionally failing to pay over employment taxes. This type of tax violation is a variety that our blog talks a lot about, chiefly because of the level of IRS and state enforcement that comes with it. If you have failed to withhold, account for, or remit payroll-related taxes, you should consider contacting an experienced tax attorney as soon as possible.
Court documents indicate that Rhichard Dale, served as the owner and operator of Advanced Pro Home Care, Inc. in Brick, New Jersey. The company, which provided services as a healthcare agency, had employees that were subject to payroll tax withholding. Dale, who served as both the operator and the payroll tax manager, properly withheld payroll tax from his employees’ paychecks, but failed to properly account for, and pay over the full amounts that were withheld.
IRS investigators and Department of Justice prosecutors asserted that Dale was responsible for withholding, accounting for, and paying over more than $500,000 in payroll taxes. Dale ensured that the payroll taxes were withheld from his employees’ paychecks, but only made a single payment of $30,000 to the IRS. Furthermore, he failed to file quarterly payroll tax returns, as required by law. In addition to serving his term of imprisonment, Dale was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $504,145.
Federal law requires business owners and those employees who are in roles responsible for payroll tax compliance to properly withhold, account for, and remit payroll taxes from employees’ paychecks. These withheld and remitted amounts represent a substantial portion of the employees’ federal tax, state tax, and Social Security payments. Understandably, the IRS and state taxing authorities become concerned when a business and its owners have failed to pass on those tax withholdings. To ensure that employers are staying on top of their payroll tax accounting requirements, the IRS requires quarterly tax returns that detail the withholding and remittance activity of the business taxpayer.
If you have failed to properly withhold, account for, or remit payroll taxes, you should consider consulting with a payroll tax defense attorney. The government has established programs to get right with the process and come into compliance. Your tax attorney will help you decipher the terms of those programs and help you determine which, if any, of them are a good fit, given your particular facts and circumstances.
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.
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