When you ask a seasoned Rolling Meadows payroll tax lawyer about what can happen to employers who fall behind on their remittances to the Internal Revenue Service, the answer you get will likely include a reference to a recent court case illustrating how serious these matters are.
In June 2022, the U.S. Attorney’s Office for the Northern District of Illinois issued a press release announcing that the owner of a Chicago precision metal machining shop had entered a guilty plea in a case involving $4.3 million in payroll taxes that were not remitted to the IRS. According to the press release, the owner of the metal manufacturing firm issued paychecks that appeared to conform to generally accepted accounting principles (GAAP) related to withholding income tax and Social Security contributions; however, an IRS audit revealed that this had not been the case from 2010 to 2018.
The guilty plea entered by the aforementioned Chicago business owner may allow him to negotiate a restitution payment plan, often referred to as an offer in compromise, so that he can settle the sizable payroll tax debt he accumulated. Had this business owner been convicted, he could have faced up to five years in federal prison, but pleading guilty improved his outcome because he can now avoid incarceration as long as he complies with the restitution plan.
For more information about legal matters related to business, employment, and taxation, visit North Suburban Legal Services LLC today and learn the various ways in which a Rolling Meadows payroll tax lawyer can help you.