According to a Department of Justice press release, a New York City staffing company owner recently pleaded guilty to violating payroll tax crimes after failing to account for, or pay over withheld amounts from employees’ paychecks, as required by law. If you have failed to strictly comply with federal payroll tax laws, it is in your best interest to contact an experienced tax defense attorney to determine your potential exposure and determine a strategy to bring you into compliance.
Defendant Admitted To Pocketing Approximately $292,000 of Withheld Payroll Taxes
Court records reveal that Steven Heppenheimer, 73, was the owner and operator of PTP Staffing Associates and PPS Associates Inc., temporary staffing businesses operating in the New York City area. Between 2013 and 2017, the defendant withheld payroll taxes from employees’ paychecks, as required by law. But when it came time to account for the amounts that he withheld and pay them over to the IRS, he failed to do so. The defendant was accused and pleaded guilty to failing to pay over approximately $292,000 in payroll taxes.
A date for sentencing has not yet been set. Heppenheimer faces up to five years in federal prison. Additionally, Heppenheimer may be ordered to serve a period of supervised release, to commence upon the completion of any term of physical imprisonment. Finally, the defendant will likely be ordered to pay restitution, representing the total amount of tax loss caused.
Coming Into Payroll Tax Compliance After Falling Behind
Employers are required to withhold, account for, and remit payroll 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 surprise that the IRS and the Department of Justice take violations of laws surrounding payroll tax withholding, accounting, and remittance incredibly seriously.
If you have failed to file a business or individual income tax return for one or more years, have filed a tax return containing information that was knowingly false, or have failed to meet your payroll tax obligations, you should seek assistance from an experienced tax defense attorney. Working together, you will establish the critical 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.
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Questions about delinquent payroll taxes and trust fund recovery penalty
- What happens if an employer continues to incur new payroll tax liabilities?
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- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
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- Examples of trust fund recovery penalty determinations
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- 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
