When a business opens its doors to the public, it is expected that they treat their customers and employees fairly and with respect. Employers are required to withhold taxes for their employees and remit that money to the IRS. Then, that money is either credited to the employee’s tax bill or refunded to them in the event of an overpayment.
Most employers take care of this task diligently and without issue. But not every business owner takes the necessary steps to ensure that they are in compliance with the law.
Last week, a Pennsylvania man was sentenced to 46 months in a federal prison on charges related to failing to remit income taxes and social security-related taxes. According to a Department of Justice press release, Harvey Bitler withheld income and FICA taxes from his farm employees’ paychecks between 2007 and 2012 but made no payments to the IRS. Bitler was found to have kept a total of just under 5 million dollars from the government and was also ordered to pay restitution to the IRS. This news goes to show business owners throughout the country that failing to follow the law regarding withholding can and will result in much more than a slap in the wrist.
If you or your business is being investing by the IRS, the process shouldn’t be taken lightly. The Criminal Investigations Division of the IRS is made up of trained agents that have only one goal in mind – send the unfortunate souls they investigate to Jail! From the initial audit to searches or questioning, the government agents at the IRS will not stop until they are satisfied. The process is incredibly intimidating, stressful and costly and can be life altering if you don’t consult with an experienced tax attorney as early in the process as possible.
Even if you aren’t being investigated for potential tax crimes, our tax attorneys and experienced bookkeepers can provide you with the valuable advice that you need to keep you and your business out of trouble.
The seasoned Orange County tax attorneys at the Tax Law Offices of David W. Klasing have years of experience representing clients before IRS auditors and the feared Criminal Investigations Division. Don’t risk defending yourself against the government alone. As Harvey Bitler learned the hard way, a federal court will not “go easy” on you because you are a small business owner. Mr. Bitler will be spending almost four years in a federal prison. Let us help you stay out of jail and keep your penalties and other civil payments to the IRS to a minimum. Contact us today for a reduced-rate consultation.