Unpaid Payroll Taxes: The Quickest Way To Prison

Employers are required to withhold taxes from their employees' paychecks. Approximately 81% of all taxes received by the United States are from payroll taxes. When a business does not turn over those taxes, the government considers the non-payment as theft of their taxes, which can result in severe civil and criminal penalties.

This course explains various ways the IRS protects its interest in unpaid payroll taxes, and how you can limit your exposure in civil and criminal penalties, as well as help your client understand their exposure as well.

You will understand how the IRS protects its interest in the payroll taxes, what civil actions can be taken against the responsible party, and the ways the unpaid payroll taxes leads to criminal prosecutions.

This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Learning Objectives:

• Understand the role of IRS in prosecuting criminal employment tax violations
• Identify the federal statutes that require employers to withhold employees' taxes
• Define what is considered a "responsible party" when withholding payroll taxes
• Know the civil and criminal penalties of failing to withhold or pay over payroll taxes
• Understand the characteristics of when unpaid payroll taxes become a criminal investigation
• Know how IRS investigates employment tax crimes
• Understand what the federal courts consider in determining a prison sentence
• Discuss examples of prison sentences for consequences in unpaid payroll taxes

• Identifying the statutes that require employers to withhold payroll taxes
• The criteria of when unpaid payroll taxes crosses the line from being a tax problem to a criminal investigation
• What steps you can take to mitigate any civil or criminal penalties

Designed for: CPAs who have clients that are employers. CPAs who sign payroll tax forms for their client when taxes are outstanding.

Level: Basic

Instructor: Robert Nordlander, CPA, CFE

CPE Credits: 2

Area of Study: Taxes