HR Strange But True

Payroll Taxes Went Up in Smoke

Smoking is a nasty habit, especially when it results in a Department of Justice (DOJ) investigation and a $67,000 penalty from the Internal Revenue Service (IRS)!

The owner of a New York City construction company and several related companies recently pleaded guilty of willfully failing to pay payroll taxes. Prosecutors for the IRS and the DOJ showed that the owner collected more than $1.7 million in payroll taxes, but spent the money on yacht maintenance and other personal expenses, including more than $67,000 in cigar purchases, rather than forwarding it to the IRS.

According to court documents, the owner stayed one step ahead of his mounting tax liabilities by shutting down companies and transferring their employees and assets to new ones.

The employer’s sentencing is set for December 2013. Hope he knows you can’t smoke inside jails in New York.

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