The IRS is increasing its focus on prosecuting business owners for delinquent federal employment tax liabilities. Specifically, in March 2017, the Treasury Inspector General for Tax Administration (TIGTA) published a report detailing how employment tax crimes have become a major problem for the IRS. In this report, the TIGTA noted that as of December 2015, 1.4 million employers owed approximately $45.6 billion in unpaid employment taxes, interest, and penalties.
The IRS views these types of liabilities as a form of unauthorized borrowing from the federal fisc. Accordingly, the IRS is developing a focused strategy to address the current payroll tax problem by expanding the IRS’s Collection function criteria to refer potential criminal cases to the IRS Criminal Investigation Division to include cases involving more than $1 million or individuals involved in ten (10) or more companies and who fail to remit payroll taxes. You can read the TIGTA’s report by clicking on the link below.
Given the heightened scrutiny for these types of tax liabilities, it is very important that businesses and their owners deal with the IRS in a very serious and responsible way. The risk of a criminal investigation/prosecution is extremely high for those taxpayers with significant employment tax liabilities that do not properly communicate with the IRS and work out mutually agreeable repayment plan. The tax attorneys with Terrence A. Grady & Associates, Co., LPA have years of experience in representing businesses and their owners in these types of situations. We can work quickly with you to develop a plan for dealing with these liabilities and work successfully with the IRS. If you have employment tax liabilities and are looking for legal representation, call us today at 614-849-0376.