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.
Defendant Failed to Account for and Pay Over Payroll Taxes to the IRS
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.
Understand an Employer’s Payroll Tax Responsibilities
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.
We Are Here for You
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.
Our office technology allows clients to meet virtually via GoToMeeting. 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.
Questions about delinquent payroll taxes and trust fund recovery penalty
- What happens if an employer continues to incur new payroll tax liabilities?
- California Employment Taxes Basics
- How Does the IRS Develop an Employment Tax Fraud Case from the First Indication of Fraud to a Criminal Indictment?
- Can more than one person be considered responsible by IRS
- How unpaid employment tax payments are allocated
- When a corporate officer is considered a responsible party
- Examples of trust fund recovery penalty determinations
- Failing to pay employment taxes after notice is given
- How to determine responsible person for trust fund recovery
- Assessing trust fund recovery penalty and option to appeal
- What is the trust fund recovery penalty?
- What are the penalties for failure to pay employment taxes
- When am I considered liable for company’s employment taxes
