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According to a Department of Justice press release, a Virginia business owner recently pleaded guilty to failing to properly withhold, account for, and pay over payroll taxes. The IRS takes payroll tax compliance very seriously due to the fiduciary relationship between the employer and the IRS. If you have failed to properly account for or pay over payroll taxes for your employees, it is in your best interest to contact an experienced payroll tax attorney to develop a roadmap to come into compliance.
According to court documents, Rama Goginen was the owner and operator of Computech Services, Inc, providing technology services to customers in the Richmond, Virginia area. Between 2007 and 2015, Goginen admitted having withheld payroll tax from employees’ paychecks but not truthfully accounting for or paying over such amounts to the IRS. The IRS and Department of Justice estimate that Goginen’s intentional criminal activity resulted in a tax loss of more than $980,000.
Goginen will not be sentenced until early next year but faces up to five years in federal prison. Additionally, Goginen will likely be ordered to serve a period of supervised release and to pay restitution to the IRS representing the tax loss that was caused.
Both business owners and those who are responsible for the payroll function are legally responsible for the accurate and timely withholding, accounting for, and remittance of employee payroll taxes. The IRS is keenly aware that some businesses may be tempted to take some of the withheld funds as a “loan”. In many instances, the business owners borrow from the payroll tax withholdings that they were required to remit and are unable to pay such amount back when they become due.
Because of the high potential for abuse, the IRS and Department of Justice generally come down hard on those who fall out of payroll tax compliance. If you have filed to properly withhold, account for, or pay over payroll taxes, it would be wise to discuss your options to come into payroll tax compliance. There are various techniques that a business owner may employ to get right with the government, but because each taxpayer’s situation is different, your experienced payroll tax attorney’s advice becomes invaluable.
Regardless of your particular business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.
In addition to our main office 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. During the COVID-19 pandemic, our staff are working from home, but have full virtual meeting capability.
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