Don’t think of it as borrowing money from the government. They don’t look at it that way. An Iowan has pleaded guilty to criminal charges for failing to remit payroll taxes withheld from employees. The AP reports that Eric Holub, a Cedar Rapids man, admitted to not remitting withheld taxes from employees of his private security firm.
He may face prison time. It can be tempting to not remit payroll taxes when your vendors want to be paid. Sometimes employers rationalize it as “borrowing” that will be repaid someday, somehow. As this case shows, it can be a very expensive “loan.”
Link: Copy of Indictment.
Russ Fox, Microsafted to ClubFed. No, that’s not a typo:
Matthew Taylor is heading to ClubFed for a 7 1/2 year of vacation from
his previous job as an art thief and tax evader. It’s what he did to
try to hide his crime that makes this case interesting…
What did he do to hide his income? He used false social security numbers to hide money in bank accounts, he used multiple post office boxes to open other post office boxes, and he sent money to an offshore account. Those are typical strategies.
It’s a couple of other things he did that grabbed my attention. He set up phony companies with names similar to other companies (Microsaft, anyone?). He blamed his mother for all his bank accounts and tax troubles…even though she was in failing health.
Well, at least he won’t have to talk to Mom at awkward family dinners for awhile.
Jason Dinesen, Have an HRA? Make Sure to Pay Your “Patient-Centered Outcomes Trust Fund Fee” . A tax where the compliance cost will usually exceed the revenue for the government.
Brian Mahany, Offshore Account Post: Trust Me, I Am From The IRS
Jack Townsend, DOJ Requests Tougher Sentencing for Tax Crimes Involving Offshore Accounts. Shoot to kill the jaywakers.
Missouri Tax Guy, Really, you don’t’ know what an Enrolled Agent (EA) is? Sadly, the EA designation is widely unknown and undervalued, as Bruce’s post makes clear.
The budget, which Chairman Hal Rogers (R-KY) has referred to as “right-sized” (downloads as a pdf), gives the IRS $9 billion for 2014. In a classic case of the pot calling the kettle black, the budget is clearly a tweak at the IRS, which has been the target recently of investigations into disreputable practices, defiant bonuses and questionable spending. Rogers says the spending limits will remain “until there are clear signs that they have fixed their broken bureaucracies, curtailed lavish
spending on employee conferences and awards, and returned to abiding by the will of Congress.”
TaxGrrrl is much more sympathetic to the IRS than I am, but she is right to criticize this typical fire-into-the-crowd approach.
Martin Sullivan, Virginia Gas Tax Cut: Drivers Short-Changed at the Pump? (Tax Analysts Blog)
Austin John, Update on the Maryland Rain Tax (Tax Policy Blog)
What could go wrong? An Honor System for Federal Taxes? (Jim Maule). In truth, the Obamacare individual mandate has some aspects of an honor system, given the inability of the IRS to use its usual collection tools to enforce it.