Ohio employer charged in a payroll tax dispute

April 02, 2014 (Press-News.org) Ohio employer charged in a payroll tax dispute

Article provided by Terrence A. Grady & Associates Co., L.P.A.
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When one thinks of tax liability or tax evasion, he or she may first imagine an employee who failed to report earned income. However, legal responsibility comes in varied forms. For example, employers or managers responsible for deducting pay roll taxes could be under the microscope, too. It is the duty of such person to forward deducted taxes to the Internal Revenue Service (IRS). If one fails to do so, he or she could be investigated by officials.

According to federal authorities, a former director of the Cleveland Job Corps Center faces criminal tax charges for this exact reason. Officials allege that the former director withheld more than $870,000 in federal taxes from workers; however, he never paid the money to the IRS.

U.S. Attorney Steven Dettelbach explains that the suspect, of Richfield, Ohio, owned Applied Technology Systems Inc. in Cleveland. Officials indicate that the U.S. Labor Department had negotiated a contract with the suspect and his company to operate the Job Corps centers in Jacksonville and Cleveland. The purported offenses occurred in 2010 and 2011.

At this time, the 53-year-old suspect has been charged with "willful failure to collect or pay taxes."

Payroll tax liability

If you own, run or operate a business, you may have financial obligations that relate to payroll taxes. Tax planning and financial organization plays a major part of being a successful individual or business. However, IRS and state tax codes are multifaceted. If you do not know what you are doing, you could be facing serious civil or criminal charges. As a result, when it is time to consider tax liabilities, it helps to have a tax lawyer assist with the dirty work.

Every employer has a legal obligation to withhold income tax, Social Security tax and Medicare tax from workers' paychecks. The money is to be held in trust for the government and submitted in yearly tax payments. If an employer fails to relay the money to officials, the employer could face serious civil penalties and additional fines. In some cases, criminal charges evolve.

If your company was recently audited regarding payroll taxes, do not panic. You do have legal rights. Again, state and federal taxes are not a walk in the park, and it is easy to overlook important duties unintentionally. To help assess your case and resolve your matter with the IRS, speak to a qualified tax attorney in the area.