Labor Smart Inc (LTNC)

[DD2Gain]

2013: $1M late payroll taxes. 2015: Payroll taxes payable double to $2 million.

Make no mistake about it, the IRS has become increasingly aggressive in their efforts to identify payroll fraud and collect payroll taxes, and has recently increased their pursuit of criminal prosecutions and incarcerations.

Payroll taxes are considered a trust tax, because it is the employer’s responsibility to collect federal income tax withholding along with Social Security and Medicare taxes and unemployment taxes and pass this on to the IRS. Many states have additional withholding requirements for various employment related taxes, such as contributions to a worker’s compensation fund. Willful failure to withhold or to avoid paying payroll taxes (or pay over trust fund taxes) can result in severe penalties and even jail time.

http://www.fiskeco.com/news-room/non-payment-of-payroll-taxes-could-mean-prison/