Owning a business seems like the ultimate achievement, but it’s one that comes with a lot of responsibility. Not only do you are you obligated to perform certain duties for your customers and vendors, you also have certain obligations to your employees that cannot be ignored.
These obligations include offering a fair wage, providing a safe work environment, and paying employment taxes. Federal law requires employers to both withhold employment taxes from an employee’s paycheck and pay those wages to the IRS in a timely fashion. If you don’t, you could be convicted of tax evasion and find yourself in dire need of a tax evasion lawyer.
“Failure to pay employment taxes is stealing from the employees of the business,” said IRS Commissioner Mark W. Everson in a recent press release. “The IRS pursues business owners who don’t follow the law, and those who embrace these schemes face civil or criminal sanctions.”
Not all employers who fail to pay employment taxes are hardened criminals. Some are just attempting to treat the government like their own personal bank. They ‘borrow the money’ with every intention of paying it back at a later date. Others actually do collect the taxes, but they keep it in their pocket because of financial difficulty instead of paying it as required.
Even though their motives may not be malicious, it’s important for all employers to understand the inevitable consequences of tax evasion. Employers who fail to follow all federal employment tax laws may find themselves facing both criminal and civil penalties. These penalties can range from extra tax fees owed, which often reflects poorly on the employer’s credit and can result in business closure, to actual prison time. Hundreds of individuals have been sentenced to confinement in a federal prison, a halfway house or home detention for criminal violations related to employment taxes.
If you’ve failed to pay your employment taxes for any reason, you should contact a tax evasion lawyer immediately. Our experienced Newark law firm will work to achieve the best possible outcome for your circumstances.