Let’s head to Corpus Christi, Texas. Stephen and Bryan Lyons operated B&T Rents. The store was profitable. Of course it helps when you don’t send your trust fund taxes to the IRS. As I’ve said before, if you do that you’re guaranteed to face an IRS investigation. They did. The owners had hoped that front companies would hide where the money was from the IRS. That wasn’t successful, and the two owners pleaded guilty to tax fraud. Stephen Lyons received a year and a day at ClubFed; Bryan Lyons received 18 months. Both had to pay $10,000 fines. The two have already made full restitution to the IRS.
If your business is having trouble paying trust fund taxes, get legal and/or tax advice now. This is one area where malfeasance will almost always be discovered and where tax fraud will almost always be prosecuted.