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    IRS withholding taxes collected, not paid, indictment claims

    | Sep 11, 2011 | IRS

    IRS investigations in Texas sometimes lead to federal indictments, and it is generally best to be proactive in confronting any problems presented. The earlier assistance is engaged in an attempt to ward off further action, the better. At the beginning of an IRS audit or investigation, there are opportunities to conference with revenue agents to both discover the breadth of the problem and open lines of communication for resolution. It is just as true after indictment, as there are many opportunities along the road to discuss issues with IRS agents and federal prosecutors in the hope of reaching an amicable solution. While it is not always possible to avoid trial, the earlier interactions with government representatives can help frame the defense to be presented in court.

    On August 1st, two former administrators of a local hospital appeared in federal District Court in Lubbock on charges of embezzlement. One was the Chief Executive Officer and the other Vice President. Each is accused of seven counts of failure to pay collected pay-roll to the IRS and one count of theft or embezzlement in connection with health care. Between March of 2006 and May of 2008, the men are said to have collected pay-roll tax from hospital employees without turning the monies over to the IRS. The government claims the amount involved is $1,856,529.

    the men kept the money for themselves or simply collected it for the hospital. Neither individual was required to enter a plea, and both were allowed to remain free pending their next court appearance. One condition of release was that they not take on any new debt nor seek any lines of credit without the consent of a federal supervision officer.

    Clearly, each defendant will now need to focus on the specific charges against them. Undoubtedly the government will press for a substantial prison term if they are able to gain a conviction against one or both men. The potentially serious consequences for these executives require that every element of the government claim and indictment be carefully reviewed and investigated to press a vigorous defense. A Texas attorney experienced in handling IRS matters and federal criminal tax matters may offer a plan of action to attain the most favorable result.

    Source: The KCBD, “Indicted ex-hospital admins appear in Lubbock federal court,” James Clark, Sep 01, 2011

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