Category Archives: Payroll Taxes

The Problem with PEOs

Posted on January 7, 2013 by Russ

Sometimes I have the right idea but don’t consider the full spectrum of issues. That’s the definition of a blind spot, and with my post on the $7 million tax fraud yesterday, I had a big blind spot. Thankfully, some … Continue reading →

Posted in Payroll Taxes | 2 Comments

What’s $7 Million Among Freinds?

Posted on January 6, 2013 by Russ

Arthur Weiss had a successful business running various professional employer organizations (PEOs). For a fee, his business would pay employees, remit taxes to the IRS and states, file tax returns, and provide workers compensation insurance. It turns out his fee … Continue reading →

Posted in Payroll Taxes, Tax Fraud | 2 Comments

Attorney Gets Tax Lien, Then Allegedly Commits Tax Evasion

Posted on July 22, 2012 by Russ

Lee Gottesman is a bankruptcy attorney in Toms River, New Jersey. He is also facing a heap load of tax troubles for some of the usual reasons. According to the Department of Justice, Mr. Gottesman allegedly created a sub account … Continue reading →

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Now He Gets to Watch Paint Dry

Posted on July 1, 2012 by Russ

Willard Douglas Kerr of Phoenix operated DK Coatings, LLC, a painting and wall covering company in Manassas, Virginia. Mr. Kerr had many employees, and the business was apparently successful. Mr. Kerr also had some pressing needs at home. He needed … Continue reading →

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Bozo Payroll Tax Scheme Lands Woman in ClubFed

Posted on June 3, 2012 by Russ

As I’ve said repeatedly, if you want to get in trouble with the IRS simply don’t remit payroll taxes that have been withheld to the government. You are certain to be investigated, and if any wrongdoing is found the investigation … Continue reading →

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On the Bright Side, Lawns Need Mowing at ClubFed, Too

Posted on May 28, 2012 by Russ

If there’s been a constant theme in this blog, it’s that if you monkey around with payroll taxes bad things will happen to you. Unfortunately, Michael Cioffi of Loxhatchee, Florida isn’t a reader of this blog. Mr. Cioffi operated a … Continue reading →

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It Only Works Until You Get Caught

Posted on May 3, 2012 by Russ

One of the recurring themes of this blog is that a business owner must pay his payroll taxes. The government considers Trust Fund taxes to be their money and they will always investigate payroll tax crimes. Similarly, workers compensation is … Continue reading →

Posted in Payroll Taxes, Tax Fraud | 2 Comments

Cash and Carry Didn’t Work

Posted on July 23, 2011 by Russ

There’s nothing wrong with paying employees in cash. Indeed, in some industries it’s the norm. However, you still must withhold payroll taxes and properly report the earnings. The owners of a Massachusetts temporary agency found that out this week. Michael … Continue reading →

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I Hope You Enjoyed that $2.4 Million

Posted on July 18, 2011 by Russ

I’ve said this before, and I’m certain I’ll say it again: If you want to get in trouble with the IRS, the fastest way to do so is to not remit your federal employment taxes. These are called trust fund … Continue reading →

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Another Reason Why You Should Check That Your Payroll Tax Deposits Are Being Made

Posted on January 31, 2010 by Russ

Let’s head to North Tonawanda, New York (near Buffalo). Vicnent Mangione allegedly had a nice tax and payroll business. The Department of Justice alleges that Mr. Mangione had a different method of handling payroll taxes than what you and I … Continue reading →

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