A Camden County, New Jersey business owner has pleaded guilty to failing to pay over to the IRS the payroll taxes withheld from his employees’ wages.
According to court documents, Tyrone Pitts of Lawnside owned and ran a construction company. From 2020 through 2023, he almost entirely failed to file the company’s quarterly payroll tax returns and didn’t pay over approximately $810,000 in employment taxes. He faces up to five years in prison at sentencing in January 2027.
Payroll Taxes Aren’t the Business’s Money
The income tax, Social Security, and Medicare you withhold from employees’ paychecks are held in trust for the government. Using that money to cover other bills when cash is tight is one of the most common ways business owners get into serious IRS trouble.
It can also become personal. Even if your business is an LLC or corporation, the IRS can hold the people responsible for paying those taxes personally liable for the unpaid trust fund amount.
How a Tax Professional Can Help
A tax professional can help you get current on deposits, file any missing payroll returns, and negotiate the past-due balance through an installment agreement or another collection alternative that fits your numbers.
If a revenue officer is already involved, a professional can handle that communication and represent you in any interview about who was responsible for the taxes.
Ron Friedman CPA helps business owners get current on payroll taxes and resolve past-due balances with the IRS. If your business is behind on payroll taxes, or you’ve heard from the IRS about unpaid employment taxes, call Ron Friedman CPA at 914.712.6919 or visit www.914tax.com for a confidential consultation.
