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Virginia Business Owner Faces Prison After Being Indicted on Employment Tax Fraud Charges

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    According to a Department of Justice press release, a Virginia business owner was recently charged with employment tax fraud after allegedly failing to pay over more than $1.5 million in withheld employment taxes. This story should serve as a reminder to those who own businesses or are responsible for properly withholding and paying over employment taxes, that the IRS and Department of Justice take violations of employment tax law very seriously. If you have failed to properly withhold, account for, or pay over withheld employment taxes, it is in your best interest to contact an experienced tax defense attorney to determine the best route to get you and your business right with the government or do damage control where that ship has sailed.

    Defendant Allegedly Withheld Taxes but Failed to Pay Them Over to the IRS

    Court records reveal that Richard E. Moore, of Augusta County, Virginia, was a part owner and Executive Vice President of Nexus Services Inc. The company offered bond securitization services to immigrants that were detained by US Immigration and Customs Enforcement. As a part of his role as Executive Vice President, Moore was responsible for paying employment taxes to the IRS. Prosecutors allege that although Nexus withheld more than $1.5 million in payroll taxes from the paychecks of employees, the defendant did not pay any of the withheld taxes over to the IRS, as required by federal law.

    A federal grand jury returned an indictment charging Moore with 10 counts of willfully failing to pay employment taxes. If convicted, he faces up to five years in federal prison on each count. Additionally, Moore may be sentenced to serve a period of supervised release to commence upon the completion of his physical incarceration. Lastly, if convicted, Moore may be required to pay restitution to the IRS, representing the total amount of tax loss he allegedly caused.

    Appreciating the Seriousness of Employment Tax Non-Compliance

    As frequent readers of our blog may already know, the IRS and Department of Justice take compliance with federal employment tax laws very seriously. Withholding taxes from the paychecks of employees is the federal government’s single largest source of tax revenue. Thus, it should come as no surprise that when employers fail to pay over such withheld amounts, the government will not hesitate to bring down the proverbial enforcement hammer. Luckily for taxpayers who have fallen out of employment tax compliance, there are several strategies to come back into compliance.

    If you have failed to properly withhold, account for, or pay over withheld employment taxes, it is in your best interest to contact an experienced payroll tax defense attorney. Together, you will work to determine the pertinent facts of your case. Next, you will jointly determine the best strategy to bring you into employment tax compliance. While you are being represented by a seasoned tax attorney, you won’t have to go up against the IRS or Department of Justice alone.

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