Today, I am sharing the article below posted from the United States Department of Justice that may hit home for some business owners. Don't forget that the IRS means business when it comes to tax fraud. If the IRS cannot secure your tax returns, it may do more than just seize assets, file garnishments and liens or close down a business due to non-compliance. You could also face jail time in addition to large fines.
An Ashland, Virginia, man who operated two masonry contractor construction companies pleaded guilty today in the U.S. District Court for the Eastern District of Virginia to one count of failing to collect, account for and pay over employment taxes to the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
According to court documents, Michael Manning, 52, was the President of Manning Construction and Manning-Carhen Construction. Manning controlled the businesses’ finances and was responsible for filing the Employer’s Quarterly Federal Tax Returns, Forms 941 and paying over to the IRS the federal income, social security and Medicare taxes withheld from the wages of the businesses’ employees. For the third and fourth quarters of 2014, Manning willfully failed to comply with these legal obligations by failing to pay over more than $800,000 in withheld taxes to the IRS. Additionally, as part of his plea, Manning admitted that Manning Construction, regularly and deliberately created false financial statements for submission to financial institutions in order to comply with that business’s existing loan covenants, to encourage banks to lend new funds to the company, or to enable the renewal of existing loans.
Manning faces a statutory maximum sentence of five years in prison and a fine of $250,000. As part of his plea agreement, Manning also agreed to pay restitution to the IRS. The sentencing hearing is set for May 31.
In the event you are approached by an IRS agent inquiring about the withholding of employment taxes, or about any other aspect of taxation or your business, you should speak with an experienced criminal tax lawyer. In that way, your rights will be protected and you can begin the process of resolving outstanding income tax problems with the IRS.
