According to a Department of Justice press release, the owner of a software development company found himself in hot water recently after he pleaded guilty to intentionally failing to pay over federal employment taxes. As we have attempted to impress upon our readers in previous posts, the government is extremely serious about the paying over of payroll taxes that are withheld from employees’ paychecks.
According to court documents, Earenest Grayson Jr. was the owner and operator of the Oklahoma-based Zealcon Corporation and was responsible for withholding payroll taxes from the paychecks of his employees. Once those taxes were withheld, Grayson was responsible for properly accounting for the funds and remitting them to the IRS.
In just a two-year period between 2014 and 2016, Grayson caused an estimated tax loss of over $1 million in his failure to pay over federal income tax and Social Security payments that were made by Zealcon employees. Grayson will be sentenced later this year and faces several years in federal prison, a term of supervised release, and an order to pay the IRS restitution.
The IRS Takes Payroll Tax Seriously
As we mentioned above, the IRS has devoted a tremendous amount of resources to identifying and investigating those who were responsible for the proper withholding, accounting for, and remitting payroll taxes that have failed to do so. Not only is the failure to comply with laws governing payroll tax compliance a betrayal to a company’s employees, it is also a theft perpetrated against the largest tax revenue streams in the federal income tax system.
Get Ahead of a Potential Payroll Tax Issue
If you are a business owner or responsible for your company’s payroll taxes and believe that your company is not properly withholding, accounting for, and remitting payroll taxes, it is in your best interest to contact an experienced payroll tax defense attorney as soon as possible. The government has established various programs that employers can use to get back into compliance with payroll tax compliance. Like many other tax issues, it is extremely advantageous to get ahead of a potential tax audit or investigation before the IRS discovers and acts upon it.
Contact an Experienced Tax Attorney Today
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have worked with business owners of companies ranging in size from large to small. If you have received notice from the IRS or state taxing authorities that your payroll tax withholding, accounting, and remittance procedures are being scrutinized, our team of zealous advocates will help you develop a legal strategy aimed at preserving the integrity of you and you business. Do not let the threat of a criminal investigation or prosecution keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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Here is a link to our practice overview video on warning signs than an audit has gone criminal.
Also, we’ve expanded our offices! In addition to our offices in Irvine and Los Angeles, the Tax Law Offices of David W. Klasing now have offices San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, and Sacramento.
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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:
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Criminal Tax Evasion
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