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MEANWHILE BACK ON EARTH...
May 24, 2004
The IRS still takes time out from defending the Ozone layer to deal with more down-to-earth issues. For example, Barry's Bar and Grill in Lincoln. Michael Dane Webb, proprietor of Barry's, last week received five months imprisonment and five more months of home detention for failing to remit $120,000 in taxes witheld from employees.
Failing to remit federal employment taxes and withholdings is perhaps the worst financial move a business can make. The IRS has absolutely no sense of humor when it comes to unpaid withholdings. Even if the business goes bankrupt, the liability for the taxes remains with all "responsible persons," so the tax never goes away. And the IRS collection personnel make sure it doesn't.
As Mr. Webb's case shows, the IRS doesn't necessarily stop its efforts at collection. Jail time may also be in the cards.
You can learn more about the case from the Department of Justice press release.
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