The Department of Justice announced last month that a Home Improvement Contractor was sentenced to two years in jail for failing to pay payroll taxes he collected from his employees. In addition to 2 years in jail he was ordered to pay restitution of over $1 million. Unfortunately for Jay Prather of Heritage General Building Contractors, even after his employees threatened to sue him and his accountant told him what he was doing was wrong, Prather did not listen. Two years later the IRS caught up with him.

Particularly after the pandemic, business owners had trouble paying their bills and many owners floated the funds hoping to catch up or used the funds for their personal expenses. While criminal sanctions are a last resort for the IRS, they will use them if you don’t get ahead of the game.

We have met with many business owners struggling with the same problems as Prather but we avoided criminal penalties by getting them on track to catch up paying those taxes. Avoiding this problem not only subjects you to jail time but also a business shut down, massive fines, and liens and levies. It can even seize your property. Not resolving things and letting it grow to a criminal problem tears apart families from the legal bills and stress of a criminal action.

Don’t let this happen to your company and to you. Call us today at 732-333-0681 to see how we can help you.