IRS raids business and owner's home, claims tax evasion

Two raids in one day. The Internal Revenue Service (IRS) decided to raid both a business owners' place of business as well as his private residence on the same day. These were not tax agents clad in black suits carrying briefcases. These were federal agents in full body armor carrying assault rifles gathering boxes of paperwork, computers and phones from both locations.

The reason for the raids? The agency believes the owners failed to file income tax returns for more than ten years and neglected to pay payroll and other taxes for his employees. The agency has stated it is considering criminal charges for tax evasion and willful failure to collect or pay taxes. If the agency successfully pursues these charges, each can come with prison time and hundreds of thousands of dollars in fines.

The allegations are serious. The IRS states the business owners shorted the government of over $1.4 million in Medicare and Social Security payments for employees. Employees may have noticed payments deducted from their paychecks. According to the government, those deduction never went to Medicare or Social Security. Instead, they state the business owners failed to transfer the payments to the government.

Were the raids a surprise?

It appears not. Employees of the restaurant had received mailings from the IRS stating the owed the IRS money for taxes not paid during employment at the restaurant. As a result, it is likely the owners were receiving similar correspondences.

The case is an example of the importance of taking correspondences from the IRS seriously. Do not ignore mailings from the agency. Review them and if seek legal counsel as needed.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1050 Connecticut Ave NW #500
Washington, D.C. 20036

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-988-4817
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 202-618-1873
Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map