Employers who fail to withhold and pay employment taxes to the IRS may face more than just an overdue tax debt. In a recent example, the IRS charged a recreational sports facility owner with 16 counts of tax fraud.
The owner was responsible for withholding the employment taxes from the paychecks of the center’s employees. The employment taxes should have been submitted and paid to the IRS via Forms 941. According to the IRS’s allegations, the owner failed to turn over more than $790,000 in withholding taxes between 2012 and 2015.
The case proceeded to trial, and the owner was convicted on the 16 counts. The sentencing aspect of the criminal tax case will be done at a separate, upcoming hearing in January. However, the potential sentence could be very grave: each criminal count could result in up to five years in prison.
The story illustrates the need for an experienced tax lawyer for anyone who has been charged with a criminal tax violation. Our law firm has over 45 years of such experience, helping clients in a variety of tax problems with the IRS. Our advocacy has led us to the U.S. Tax Court, IRS administrative hearings, and federal courts.
Notably, our law firm also understands the inner workings of the IRS. Our founding attorney worked as a trial attorney for the Internal Revenue Service's Office of Chief Counsel before founding his own firm. Whatever your tax problem, chances are that our law firm can provide legal guidance or representation.
Source: Accounting Today, “Tax Fraud Blotter,” Jeff Stimpson, Sept. 18, 2016