The number and size of payroll tax violations is going up, and mere IRS penalties are not enough to stop the trend. Employment tax embezzlement is a felony punishable by up to five years in prison. In particular, cases involving over $1 million, and individuals involved in 10 or more companies with payroll tax failures. Even so, we should expect more enforcement, and earlier identification of payroll tax problems from the IRS. Meanwhile, the number of employers with employment tax noncompliance for 20 or more quarters of delinquent employment taxes is steadily growing.

Source: Forbes March 23, 2017 13:07 UTC