DOJ highlights actions to curb employment tax evasion

In an effort to combat employment tax evasion, the U.S. Department of Justice Tax Division recently highlighted the actions they will take. Employers are required to collect, account for, and pay over taxes withheld from employee wages. This includes federal income, Social Security, and Medicare taxes. Employers have an independent responsibility to pay their matching share of Social Security and Medicare taxes.

The DOJ will take action against employers that paid employees in cash, that file fraudulent returns, and use pyramid schemes to avoid employment taxes. Since Jan. 1, 2017, DOJ has filed 17 suits, seeking more than $10 million in unpaid employment taxes.

Employment taxes are an important part of the tax system and generate more than $1 trillion every year in payments to the government. The IRS wants to help employers avoid problems. Collection of employment taxes is a priority for the IRS,