Longtime business owner Johni Semma owned the Bayside Sports Bar & Grill in Walled Lake, Michigan, in the Detroit area. Mr. Semma also owned and managed an adult entertainment establishment called The Coliseum. Along with the employment tax dispute, Mr. Semma is charged with failure to file an income tax return. The employment tax charges alone amount to 24 counts against the businessman.
While failure to properly remit or pay over employment taxes may not seem the most serious crime, it is a hardball issue for the IRS. Conviction on one count of employment tax fraud can earn five years in prison. Should Mr. Semma be convicted on all 24 counts, he is looking at some serious time behind prison walls.
The IRS routinely identifies and investigates employment tax scams that take a number of forms, including:
Mr. Semma also faces allegations that he failed to report significant income on the sale of his strip club after earning approximately $3.5 million on its sale in 2012. Altogether, Mr. Semma faces significant prison time, restitution, probation, and financial penalties. (Interested in reading the end result? Go here to read further.)
Whether a tax controversy is accidental or intentional, it is always a better strategy to retain a knowledgeable tax attorney before the IRS comes knocking on your door. From Offers in Compromise to other solutions, it is always easier to address a criminal tax matter before an indictment is returned.
Trusted advice from experienced tax lawyers in Cleveland
Whether you had prior knowledge, or you just discovered a false income tax return or payroll tax issue, our tax attorneys can help. At Robert J. Fedor, Esq., LLC we provide confidential, strategic options to tax litigation involving high-asset individuals and corporate assets. Contact us or call 800-579-0997 today.