A tax attorney from Pittsburgh, PA and co-owner of the Iceoplex recreational sports facility, Steven Lynch, was sentenced to 48 months in prison for failing to collect, account for and pay over employment taxes to the IRS.
From 2012 to 2015, Lynch controlled the finances for the business and withheld more than $790,000 from the wages of his employees but failed to turn those funds into the Internal Revenue Service.
According to Principal Deputy Assistant Attorney General, Caroline Ciraolo, “Business owners and operators who choose not to pay over to the United States that they withheld from their employee’s wages are stealing from the U.S. Treasury and should plan on facing prosecution and incarceration.”
In addition to his prison sentence, Lynch will serve three years supervised release, pay $793,145 in restitution and a $75,000 fine.
If you owe payroll or employment taxes, it is important to contact an attorney to see whether you may be prosecuted. The IRS is cracking down on employment taxes – shutting businesses down and even prosecuting the liable parties.