skip to Main Content

Criminal Investigations to Focus on Employment Taxes

Officials with the IRS and the Department of Justice (DOJ) recently announced that criminal investigations will increasingly focus on employment tax. As part of the Tax Increase Prevention Act of 2014, the IRS established a voluntary certification program for professional employer organizations (PEO). Many wonder whether the IRS’ increased focus on employment tax will give PEOs pause before becoming certified under the program as the certification will shift liability to the PEOs.

The government will no longer abide by a front door policy. Previously, the government extended leniency to employers who failed to pay employment taxes, but instead spent the money on the business while treating employers who spent the tax money on personal expenditures as criminal cases. Now, the government will largely disregard whether an employer spent the employment tax payments for personal or business purposes. As evidence of the shift in focus, a DOJ official pointed to the recent sentencing of Kevin Bertram, former CEO of Distributive Networks LLC, who was sentenced to 30 months in prison and ordered to pay $897,921 in restitution for failure to pay employment taxes even though court documents suggest Mr. Bertram spent the money on the business.

alliantNational, alliantgroup’s national practice, provides subject matter expertise on complex and emerging federal, state and international tax issues as well as legislative and regulatory affairs to help businesses receive timely and precise guidance on all their tax matters. Contact us today to learn how your business can benefit from alliantgroup’s tax consulting services.

GET STARTED

Contact our team today with any tax controversy concern you’re facing. We fight every day to protect the interests of the taxpayer, and we look forward to putting you in the best tax situation possible.

GET STARTED

Contact our team today with any tax controversy concern you’re facing. We fight every day to protect the interests of the taxpayer, and we look forward to putting you in the best tax situation possible.

Back To Top
×Close search
Search