Employment Tax Fraud - Criminal Investigation (CI)
Employment Tax Requirements
Employers are required by law to withhold employment taxes from their employees' salary checks.
Employer and Employee Responsibilities
Both employer and employee hold the responsibility for collecting and remitting withholding taxes to the Internal Revenue Service (IRS.)
Employment Tax Evasion Schemes
Employment tax evasion schemes can take a variety of forms. Some of the more prevalent methods of evasion include pyramiding, employee leasing, paying employees in cash, filing false payroll tax returns or failing to file payroll tax returns.
Enforcement statistics on investigations initiated, prosecutions recommended, indictments, sentenced and months to serve in prison.
Examples of Employment Tax Investigations
Examples have been written from public record documents filed in the district courts where the case was prosecuted.