The U.S. Department of Justice’s Tax Division—where two members of our team worked as federal prosecutors before moving to private practice—has publicly stated employment tax and trust fund recovery penalty (TFRP) cases are high priorities.

Fortunately, this is an area where seasoned and knowledgeable counsel can help. Remarkably, no certain test exists within the law to distinguish whether a person working for an entity is an “employee” or an “independent contractor” and this often turns on a meaningful and nuanced analysis of the facts and circumstances of each particular situation. Similarly, the IRS often attempts to claim individuals who do not consider themselves officers or directors of an entity are nevertheless responsible for collecting and paying over trust fund taxes—even if that person has nothing to do with payroll, bookkeeping, accounting, or even paying the bills. 

We have substantial experience representing individuals and entities under investigation related to employment tax issues and we have tried criminal employment tax cases before federal juries.