Employers that withhold taxes from employees and don’t pay them over to the IRS can face severe penalties. They may even wind up in jail. In one case, a Maryland man was sentenced to three years in prison for not paying employment taxes to the IRS on behalf of his companies’ employees. According to court documents and testimony, the man operated two employee staffing companies that provided workers for manufacturing businesses. As the owner-operator of the companies, he was responsible for withholding and paying employment taxes on behalf of employees. Between March 2018 and March 2021, the man withheld but didn’t pay to the IRS more than $2 million in such taxes.
Our Blog 