On April 11, 2019, the IRS announced the results of a national two-week education and enforcement campaign to combat employment tax crimes.  Payroll taxes account for approximately 70% of all revenue collected by the U.S. Treasury.  Given the significance of payroll tax collections to the federal government, IRS revenue officers across the country visited   nearly 100 businesses during the two-week period to discuss suspected employment tax noncompliance by the businesses.  These revenue officers informed the businesses about how to catch-up on previously owed payroll taxes, how to stay current in collecting and remitting payroll taxes, and the potential civil and criminal penalties that businesses and individuals face with respect to noncompliance.

In addition to this educational outreach, IRS Criminal Investigation and the Tax Division of the Justice Department worked together on approximately fifty law enforcement actions related to employment tax crimes.  The two-week campaign resulted in twelve individual indictments, four executed search warrants, and six criminal sentences for individuals and businesses that failed to comply with the employment tax laws.

This campaign demonstrates the seriousness with which the IRS and the Justice Department view employment tax noncompliance and crimes as well as the many tools the IRS has at its disposal to combat noncompliance.  The Justice Department maintains a list of notable employment tax enforcement developments.