Can you go to jail if you have employees and have not paid the taxes you withhold from their wages?

Posted on July 02, 2012

If you have employees and have not paid the taxes you withhold from their wages to the IRS, can you go to jail? The answer is an overwhelming YES. You can also be held personally liable for the unpaid taxes as well. The Department of Justice recently announced a 24 month sentence for a Maryland man who withheld nearly 4 million dollars from his employees and who failed to turn that money over to the IRS. The Court also ordered restitution of over 5 millions dollars in addition to the prison sentence. The IRS said that business owners have an inescapable obligation to withhold income taxes for employees and to remit those taxes to the IRS. Does your business have unpaid employment taxes? Call us, we can help. Call 877-4-IRS-LAW