Thinking About Evading Payroll Taxes by Paying Employees in Cash? Think Again!

Tax Resolution Services webpage about Payroll Tax Problems proclaims “The IRS is very aggressive in their collection attempts for past due payroll taxes.”  And that is the truth!  The New Hampshire businessman highlighted in the article below apparently thought he was above the law when he tried to evade payroll taxes by paying his employees in cash.  Maybe he thought he was doing his employees a favor by giving them their entire wage tax free.  Maybe he didn’t realize that the only thing he was really doing was setting himself up to lose his freedom and his business!

A New Hampshire businessman pleaded guilty to attempting to evade payroll taxes in connection with the operation of a contracting business he owned.

Richard H. Taylor, of Weare, N.H., owned and operated R.H. Taylor Drywall, LLC, a construction management company based in Goffstown, N.H. From about April 1, 2004, to July 31, 2004, under Taylor’s direction and supervision, the company paid many of its employees’ wages in cash but did not withhold federal income taxes and Federal Insurance Contribution Act taxes from the cash wages and did not report the payment of those wages to the IRS. Taylor’s conduct resulted in a tax loss to the United States of about $109,000.

He faces up to five years in prison and a fine of up to $250,000.

Our team of tax attorneys and IRS specialists have helped businesses across the nation to resolve their payroll tax debt problems.   And we know that by helping resolve payroll tax problems, we are also helping to save their business from the wrath of the IRS.  No business is too large or small for our Certified Tax Resolution Specialists.  Call 1-866-IRS-PROBLEMS for a free payroll tax consultation today!

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One Response to “Thinking About Evading Payroll Taxes by Paying Employees in Cash? Think Again!”

  1. Tax Attorney Resources and Tips to Help Resolve IRS Tax Problems Says:

    [...] Why Paying Employees in Cash Will Not Get You Off the Hook For Payroll Taxes Can you pay your workers in cash but so that you don’t have to withhold federal income taxes and Federal Insurance Contribution Act taxes from the cash wages? NO. Will the IRS find you if you try to evade your employment taxes through this method? Absolutely. Read more about why this is not a way to go. [...]

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