A Look at Employment Tax Evasion Schemes

Posted By Law Offices of Jeffrey C. Grass || 28-May-2014

Tax evasion is broadly defined as any activity that involves avoiding paying taxes to the government. It may include failing to pay taxes altogether or failing to pay the appropriate amount of taxes. Employers who are accused of employment tax evasion schemes should contact a criminal defense attorney with extensive experience in this practice area. A criminal defense lawyer can aggressively protect the rights of employers and help them learn about their options.

Cash Payments

Many businesses must hire part-time or temporary help as the demand for services periodically rises and falls. Hiring these employees requires a great deal of paperwork. Many businesses find it easier to simply pay employees in cash. Unfortunately, paying employees in cash is a type of employment tax evasion scheme. It results in a loss of employment taxes to the government. The employee also loses future Medicare and Social Security benefits. Cash payments are considered tax evasion whether they are used to partially or wholly compensate an employee.

Pyramiding Schemes

If your business has been accused of pyramiding, it’s critical to contact a criminal defense attorney right away to represent your interests. Pyramiding is a type of tax evasion scheme in which the business withholds taxes from the employees’ paychecks. However, the funds are not paid to the IRS.

Payroll Tax Return Falsification

The tax code is complicated and challenging to understand. Making a simple, unintentional error on a tax return from time to time is understandable. However, the government will charge a business with tax evasion if it is suspected of falsifying payroll tax returns, which results in an underpayment to the government. Another type of tax evasion involving payroll tax returns is failing to file these documents.

The criminal defense team at the Law Offices Of Jeffrey C. Grass has more than two decades of experience in defending the rights of those accused of tax evasion. Our criminal defense team routinely handles cases involving failure to report income, failure to file tax returns, misuse of client trust accounts, and many more. Residents of the Dallas and Plano areas are invited to call our criminal law firm at for more information about arranging for legal representation.