Written by attorney Ayuban Antonio Tomas

Contractor Convicted of Tax Fraud For Scheme To Avoid Payroll Taxes

A contractor has been sentenced to two years in prison on one count of tax evasion in Miami. He also must pay $352,605 in restitution after being convicted of trying to avoid paying payroll taxes, according to a report in the South Florida Business Journal.

A Miami tax attorney should be called to handle corporate or business tax issues in South Florida from the earliest indication an investigation is under way. As we reported recently on our Florida Tax Lawyer Blog,improper tax credits is just one way a business can find itself in tax trouble. In this case, the defendant was accused of paying shell companies set up as contractors, which in turn wrote checks cashed at a local check-cashing store. The cash was then used to pay workers. The government alleges the scheme ran from 2005 to 2007 and was devised as a way to avoid paying payroll taxes.

The Cypress Times reported that the case was handled by the U.S. Attorney for the Southern District of Florida and the Department of Justice tax division.

Payroll and withholding tax issues are among the most common tax problems faced by businesses in South Florida. Such issues can involve any number of factors, including the classification of employees. As we reported recently on our Florida Tax Lawyer Blog, whether someone is categorized as an employee or independent contractor can be a complex matter that determines whether a business is responsible for withholding taxes.

Other business tax issues in Miami can include inaccuracies in reported income, issues with payments to Social Security, sales tax issues or issues involving alleged tax evasion. We understand such allegations can be devastating to a business and will work with you to address your concerns while building the best defense possible to fight for the rights of your company.

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