It's a three-hour drive west of Cleveland to Fort Wayne, Indiana. That's where two men are facing criminal charges of conspiring to commit tax evasion and tax fraud. The men are owners of Electric Vehicles Inc.
They're accused of withholding more than $350,000 in federal payroll taxes from company employees but not turning the funds over to the Internal Revenue Service. As many of our readers know, it's not uncommon for owners of struggling businesses to resort to dipping into payroll taxes to try to meet financial obligations.
But the practice is illegal and often leads to not only worsening financial difficulties but even criminal charges filed by the IRS. In the case of the Indiana company, one of the men indicted is a certified public accountant and former professor of accounting and finance.
According to a newspaper account, the pair is accused of a dozen crimes, including tax evasion, conspiracy to commit tax fraud, obstruction and 9 counts of failure to pay federal income taxes.
Conviction on all counts could mean years in federal prison for the men. We cannot know whether the men are guilty of these serious crimes or not, but we do know that in similar matters involving employment taxes, it is wise for employers and business owners to contact an experienced criminal tax attorney before speaking with IRS agents.
While the agents might appear to be friendly and willing to listen to explanations of your financial problems, in reality, they are searching for evidence as they investigate possible crimes. When contacted by agents, politely decline to answer questions. Instead, take their contact information and have a tax attorney speak with the agency.
