On October 29, 2019 we ORIGINALLY posted The IRS is Now Criminally Prosecuting Employers For Failure To Pay Withheld Payroll Taxes! where we discussed that the IRS is stepping up criminally prosecuting business owners for failing to turn over withheld payroll taxes.
The November 2022 Lowlights From DoJ include the following employment tax prosecutions:
- The sole shareholder and president of an Iowa landscaping and construction company, pleaded guilty to evading payment of his company's employment taxes. The company withheld approximately $1 million in payroll taxes but failed to pay over that amount to the IRS. While the shareholder, Kevin Alexander, admitted that he was liable for paying the company's taxes, he sought to conceal some of his assets from the IRS.
- The former operator of several Key West staffing agencies, Oleksandr Morgunov, pleaded guilty to defrauding the IRS out of more than $7.9 million in employment taxes. Under Morgunov the staffing agencies facilitated the employment of individuals not authorized to work in the U.S.
- The former owner of two car rental companies, Ari Weingrad, pleaded guilty to willfully failing to pay over withheld employment taxes to the IRS. Weingrad knew he was responsible for collecting, accounting for and paying over withheld payroll taxes, but willfully failed to remit them.
- Yigal Ziv, who owned and operated a software company, pleaded guilty to employment tax violations. Ziv was responsible for withholding employment taxes from his employees and filing his business's quarterly employment tax returns. However, although Ziv withheld taxes from his employees' wages, he didn't remit those taxes to the IRS. In addition, he failed to file employment tax returns.
Read more at: Tax Times blog