Tax Law:

Willful Failure to Collect or Pay Over Taxes

Employers have a duty to withhold certain deductions from their employees’ paychecks for income tax, Social Security and Medicare. In some instances, employers experiencing financial hardships will neglect to send these funds to the IRS. Often, these employers are not trying to cheat the government, but rather using creative bookkeeping tactics with the intention of fully reimbursing the trust fund and sending the same amount to the IRS as soon as possible. Employers may be able to get away with such creative bookkeeping tactics once or twice; however, these employers may get caught when they do not earn as much revenue as expected and are unable to reimburse the IRS.

If your business is being criminally investigated for a failure to collect or pay over taxes from your workers’ paychecks, contact our tax attorneys today by completing our free case review form on the right. Our tax lawyers have extensive experience handling IRS collection issues and other matters involving tax law with favorable results.

The IRS may have singled out your case of willful failure to collect or pay over taxes to the government to serve as a warning to other employers engaging in similar practices. Regardless, you are still at risk for serious consequences, including jail time and significant fines. To determine whether a tax defense lawyer can help you minimize these penalties, fill out our free, no obligation form on the right.