According to a Department of Justice press release, an Ohio man pleaded guilty recently to failing to pay more than $750,000 in employment taxes and failing to file employment tax returns. This case highlights the serious legal repercussions for employers and individuals who neglect their payroll tax obligations. If you have failed to file employment tax returns or are behind on employment tax payments, it is critical to discuss your situation with an experienced tax defense attorney before you face prosecution yourself.
Defendant Directed His Business to Withhold but Not Pay Over Employment Taxes
Court records reveal that from 2014 through 2020, Eric Moesle of Pickerington, Ohio, served as the office manager for Elemental Dental in Pataskala. In his role, Moesle oversaw payroll, bookkeeping, and tax return preparation. Although Social Security, Medicare, and income taxes were withheld from employees’ wages during that time, Elemental Dental, under Moesle’s direction, failed to remit those taxes to the IRS. Additionally, the business did not file the required employment tax returns or pay the employer’s share of the taxes, as required by law.
When questioned by IRS agents in 2022, Moesle falsely claimed that he was unaware the employment taxes had not been paid and that the necessary tax returns had not been filed. Moesle’s actions resulted in a tax loss of $760,255 to the IRS.
The defendant’s sentencing will occur later this year. Moesle faces a maximum penalty of five years in prison. He could also be sentenced to serve a period of supervised release. Finally, he may be ordered to pay restitution to the IRS, representing the amount of tax loss that he caused.
The Importance of Addressing Employment Tax Issues with a Seasoned Tax Attorney
The case of Eric Moesle shows that failing to pay employment taxes and file employment tax returns can lead to severe consequences, including prison time and significant fines. If you have failed to comply with your tax obligations, particularly employment taxes, it is in your best interest to speak with a seasoned employment tax attorney. Together, you can evaluate your situation, take corrective actions, and create a plan to bring you back into compliance with the law.
