New Haven Connecticut Criminal Payroll Tax Prosecutions: The factors the IRS looks for in deciding to pursue a criminal employment tax case for unpaid payroll taxes.
By Eric L. Green, Your IRS Tax Litigator
(Tax Rep LLC)
Historically there have been few criminal employment tax prosecutions, however the IRS Criminal Investigation Division has suddenly focused on this area. The number of prosecutions for criminal employment tax violations under IRC § 7202 has swung up significantly in the last 2 years. We represent taxpayers in a number of criminal tax prosecutions, and can tell taxpayers that the things that the IRS Criminal Investigation Division looks for when deciding to pursue a criminal payroll tax case against a business owner. Those things they look for include: • Recidivism: Where the taxpayer has opened a series of companies that fail to pay the employment taxes. • Personal benefit reaped by the owner ...