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Queens Business Owner Convicted of Employment Tax Law Violations, Faces Prison

Greenville Ohio Businesswoman Pleads Guilty to Payroll Tax Violation

According to a Department of Justice press release, a man from Queens, New York, recently pleaded guilty to intentionally violating federal tax law when he failed to pay employment taxes to the IRS. Employment tax compliance is of particular interest to the IRS and state taxing authorities due to its relationship to employees and their worker classification. This story should serve as a reminder to business owners to periodically check in with their employment tax compliance. If you have any doubt as to whether federal or state employment taxes are being properly paid, it may be time to consult with an employment tax defense attorney.


Owner of Plumbing Companies Paid Employees in Cash, Paid No Employment Tax

Court documents reveal that Sergi Denko owned and operated Independent Mechanical Inc. and Denko Mechanical Inc. Both companies specialized in plumbing and served clients in Queens. Between 2010 and 2014, Denko’s customers paid a substantial amount of his business’s invoices using personal checks. Denko admitted to cashing those checks and paying his employees in cash. Investigators and prosecutors alleged that Denko then filed knowingly false employment tax returns that omitted the wages that were paid to his employees in cash. In turn, the employment taxes associated with those cash wages were not paid over. Denko admitted that he caused a tax loss of over $350,000.

Denko will be sentenced later this year. He faces up to five years in federal prison. Additionally, Denko may be sentenced to serve a period of supervised release upon the completion of his physical incarceration. Finally, Denko will likely be ordered to pay restitution to the IRS equal to the amount of tax loss that he caused.

 

Benefits of Contacting a Business Tax Attorney

Business owners are chiefly focused on running their business. The intricacies of tax compliance are often on the bottom of the list of important business matters that are considered on a daily basis. Nonetheless, the consequences for tax noncompliance can be severe. If you have been selected for examination or are under investigation for employment tax noncompliance, it may be time to discuss your case with an experienced tax defense attorney.

From the minute that you engage your tax defense lawyer, you will be represented in your dealings with the IRS or other investigators. Many taxpayers believe that they can take on the IRS alone or that they are capable of talking their way out of a particular line of questioning. The truth is that most taxpayers end up making statements or producing documents that can be used against them later, doing more damage to their case than they expected.

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.

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See our Employment Tax Law Q and A Library

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.