According to a Department of Justice press release, a Virginia businessman was recently sentenced to 78 months in prison for evading employment taxes, filing false tax returns, and obstructing the IRS. This story, like many others that we’ve highlighted, underscores the importance of complying with federal and state employment tax laws. If you have failed to withhold, account for, and remit taxes from employees paychecks as required by state and federal law, it is in your best interest to contact an experienced employment tax defense attorney to determine the best strategy to bring you into compliance.
Defendant Failed to Pay Over Employee Tax Withholdings and Lied to IRS About Assets
According to court documents, James C. Jones Jr., owner of Lifeline Ambulance Service Inc., was responsible for paying approximately $200,000 in withheld taxes. Instead, Jones lied about his assets, which included Caribbean beachfront condos, foreign bank accounts, and a classic car collection. He continued to obstruct the IRS by filing false tax returns from 2013 to 2018 and falsely reporting foreign bank records. Jones’s actions resulted in a tax loss of over $1.5 million.
In addition to his prison sentence, Jones was ordered to serve three years of supervised release, commencing upon the completion of his physical prison sentence, pay a $250,000 fine, $394,508 in restitution to the United States, and cover prosecution costs.
The Importance of Complying with Employment Tax Laws
As we have mentioned in countless other blog postings, the IRS uses withholding from employees’ paychecks as a major source of tax revenue. In fact, it is the single-largest funnel of tax dollars from Americans into the federal government coffers. Therefore, it should not be surprising that the IRS and Department of Justice take compliance with the laws around employment taxes very seriously. Employers are required to withhold, account for, and remit withholding taxes. Those who don’t could face serious consequences, like the defendant in this case. If you have failed to comply with federal or state employment tax laws, you should strongly consider contacting a seasoned employment tax defense lawyer to determine the extent of your potential liability and to help you get right with the government.
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.
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