There’s a sure-fire method to get the IRS upset with you. Just withhold trust fund taxes from your employees (FICA and income tax) and don’t send them to the IRS. I can almost guarantee you that bad things will happen to you.
And if at the same time you don’t file your annual FUTA (federal unemployment tax) returns and your personal income tax returns, the IRS may want to send you to ClubFed.
Just to make sure you get some attention you can also be accused of defrauding some of your customers. And as long as you’re going this route, you might as well allegedly defraud your investors.
That’s what Marengo, Illinois contractor John M. Volpentesta is accused of. He faces 23 counts of mail fraud, wire fraud, and tax fraud. He allegedly defrauded customers investors out of over $1 million and didn’t remit federal trust fund taxes of $164,999. And, yes, it’s alleged that he didn’t file the FUTA tax returns from 2003 – 2005 and that he and his wife didn’t file three years of personal tax returns. If found guilty, Mr. Volpentesta is looking at a lengthy stay at ClubFed.
Trial will probably be next summer in Rockford, Illinois.