State Shuts Down Business After Tax Dispute
The IRS is not the only sheriff in town. State revenue departments are getting increasingly aggressive against individuals and businesses they believe are cheating on taxes. This is especially true if the taxes are considered trust fund taxes – sales and withholding taxes.
According to a prepared statement from the Indiana Attorney General’s Office, a state court judge ordered Dave Evans and Dave Evans Tire Inc of Kokomo, Indiana to shut down until resolution of a claim of $550,932 for unpaid taxes. As of this writing, Evans has not been criminally charged.
Prosecutors say that customers paid sales taxes and disposal fees on tire sales to Evans but Evans never turned those monies over to the Indiana Department of Revenue. Likewise, Evans is alleged to have withheld taxes from his employee’s paychecks but never turned those monies over either. If true, Evans can still face felony tax charges such as tax evasion.
According to published press reports, Evans said, “I have had difficulties concerning tax payments for some time, and have been working with the department of revenue to resolve them. I am determined to do the right thing…”
Unfortunately, in our experience it is very difficult for a business to bounce back after being shut down by the state. Both customers and vendors become leery. (The attorney general says that it is making arrangements for customers to retrieve vehicles left for servicing.)
In a prepared statement, Indiana Attorney General Greg Zoeller said, “When consumers make purchases and are charged sales tax it is required that the tax money be remitted to the state. When employees have their taxes withheld on their paychecks it is also required that this be remitted to the state. We support small business and private enterprise, but when an individual reduces his overhead through tax evasion, it undercuts other law-abiding competitors who play by the rules…”
Businesses that find themselves over their head should seek the services of an experienced tax attorney immediately. Quick intervention usually means not having to worry about tax evasion or other criminal charges. It often means keeping the business doors open as well.
Whether you need an experienced IRS tax attorney or a criminal tax attorney well versed in sales tax law, think of us first. We offer a full range of tax services including collections, tax audit and criminal defense. More importantly, we offer decades of excellent tax experience. For more information about collections and audits, contact attorney Bethany Canfield at or by telephone at (414) 223-0464. Already under criminal investigation or facing tax evasion charges? Contact attorney Brian Mahany at or by telephone at (414) 704-6731 (direct). All inquiries are kept in strict confidence and protected by the attorney-client privilege. Legal services provided in most jurisdictions.
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