On the Bright Side, Lawns Need Mowing at ClubFed, Too

If there’s been a constant theme in this blog, it’s that if you monkey around with payroll taxes bad things will happen to you. Unfortunately, Michael Cioffi of Loxhatchee, Florida isn’t a reader of this blog.

Mr. Cioffi operated a very successful lawn service; back in 2005-2006 he employed 30 individuals. Mr. Cioffi paid his employees but didn’t withhold any payroll taxes. Sooner or later an employee will file his own income tax return and the issue of social security will arise. If you want to get in trouble, Mr. Cioffi definitely went down the right path.

Undoubtedly, the IRS began an investigation. When they discovered his 2006 return showed just under $800,000 of the over $2 million of gross receipts from his law business, a criminal investigation was a certainty. Mr. Cioffi pleaded guilty to one count of failing to account for and pay payroll taxes and one count of filing a false tax return. He’ll likely get to visit ClubFed in the near future.

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