Tax Evasion Penalties Guide & Tax Fraud Jail Time Sentences

Can you serve tax fraud jail time? Learn about tax evasion penalties, possibility of a prison sentence for crimes, fines & other tax return laws & punishment

How to Work with Brotman Law on Your IRS Collections Case

The biblical tale of David and Goliath is certainly inspiring and does much to instill the belief that you can overcome any opponent, no matter how much they out-size, out-weigh or out-spend you.

Unfortunately, this is not a fair comparison to use for someone going nose-to-nose with the IRS.

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When Tax Investigations Go Criminal

when tax investigations become criminal

When the IRS knocks on your door, it is enough to make you shake in your shoes. A visit from a revenue agent (auditor) or revenue officer (collection) who claims to have detected possible fraud means you are already in hot water.

The steps from suspicion to criminal tax investigation have already taken place, and that IS agent already has enough information to prosecute.

It is also possible that you expected this visit if you or your business have been audited recently by the IRS and you have gleaned from your interaction with the service that they may have found something fishy in the handling of your taxes.

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Explanation and Penalties of Sales Tax Fraud in California

Explanation and Penalties of Sales Tax Fraud in California

Sales tax is added to almost every piece of merchandise sold in the State of California. It adds to the city, county, and state coffers to help pay for services everyone enjoys.

Sales tax can also be a lure into illegal activity. Sometimes it is not intentional. A retailer makes an error that can be attributed to complexity of the tax code. This is merely negligence.

Other times, it is very intentional. Then it becomes sales tax fraud.

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What Is a Trust Fund Recovery Penalty (TFRP): Your Ultimate Guide

If your company has been struggling with tax issues and the resulting penalties, the trust fund penalty (TFRP) can be a crushing blow with far-reaching consequences for your personal financial security and future.

But all is not lost…

Join us as we discuss common questions, such as “what is the trust fund recovery penalty?” and, “how do you avoid the trust fund recovery penalty?”

So, what is a trust fund recovery penalty?

Also sometimes referred to as the “responsible person penalty,” a trust fund recovery penalty is a personal liability that may occur if a company’s payroll taxes are not properly remitted to the Federal government.

Typical examples of employment taxes not remitted are Medicare and social security deductions from employees’ wages.

It forms part of the payroll tax audit, and is definitely not something you should ignore.

How much is the trust fund recovery penalty?

For uncollected tax, the trust fund recovery penalty calculation is the employee’s part of any withheld FICA taxes plus withheld income taxes, and will be the same amount as unpaid trust fund taxes. For collected taxes, trust fund recovery penalties are the unpaid amount of collected excise taxes.

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An Introduction to Payroll Tax Fraud: EDD Investigations

payroll tax fraud

Payroll tax fraud can occur either through deliberate criminal activity or simply because an employer or employee has provided inaccurate or incomplete information.  The Employment Development Department (EDD) takes payroll tax fraud extremely seriously, so it is imperative that you understand the ways in which fraud can occur and take the necessary steps to avoid committing fraud.

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