Failing To Pay Withheld Payroll Taxes is a Serious Crime – New Jersey Couple Facing Prison and Large Fine

The money collected from payroll taxes by an employer should not go back into the business.  These taxes are to be turned over to the government no later than three days after the pay date of the payroll checks.  When a business fails to adhere to this, they are looking to get into deep trouble with the IRS.  Payroll taxes are considered a “trust” tax and nonpayment of them is essentially considered stealing from the government.  This is not looked upon lightly.  Worse are those employers that not only keep payroll tax collectionsfor their own use, but also keep employees’ retirement savings and other expenditures that affect the employees as well.  This is truly a crime – both against the government and the people who are honestly working for them.  This is the case in the article below – and hopefully they will pay to the fullest extent of the law!

A federal jury in Trenton, N.J., convicted James and Theresa Demuro, of Bridgewater, N.J., of one count of conspiracy to defraud the United States and 21 counts of failure to pay over employment taxes.

James and Theresa Demuro co-owned and operated an engineering and surveying firm called TAD Associates LLC, dba DeMuro Associates. From 2002 to 2008, the Demuros withheld employment taxes from their employees’ paychecks but failed to pay more than $546,247 of those withholdings to the IRS. In addition, the Demuros operated under a prior entity name, DA Resources Inc., which they ceased operating in an effort to thwart the ability of the IRS to collect unpaid employment taxes related to that entity.

In addition, the Demuros withheld funds from their employees’ paychecks for health insurance, child support and retirement savings accounts, and failed to pay these funds over to the appropriate entities.

The Demuros used the withholdings for their business and personal use, including more than $280,000 in personal purchases.

They face up to five years in prison and a $250,000 fine for each count of conviction.

If you own a business and have fallen into payroll tax problems, pledge to start the new year off by resolving your payroll tax debt.  Tax Resolution Services can help you resolve delinquent payroll tax problems – don’t risk losing your business, your assets and your freedom!  Seek a no-obligation, free payroll tax relief consultation by calling Tax Resolution Services at (888) 699-7630 today!

More Tax Help, IRS News and Tax Relief Tips:

  1. IRS Takes Nonpayment of Payroll Taxes Seriously: Miami Businessman Receives Two Years in Prison for Tax Crime
  2. Unpaid Payroll Taxes Amount to $15 Million for N.C. Businessman Indicted on 63 Federal Charges
  3. Federal Tax Crime by Louisiana Man

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