Posted by: Robert Horwitz | June 29, 2026

The Fourth Circuit Reminds Us that Failing to Pay Withholding Tax Can Land You in Jail by Robert S. Horwitz

Anyone who has ever received a paycheck or paid employees knows that income tax and the employee’s portion of social security and Medicare tax are withheld from the employee’s wages. Income withholding tax accounted for $2.8 trillion of tax collected in fiscal 2024. This compares with corporate income tax of $565 billion paid that year. See returns filed, taxes collected and refunds issued. Medicare and Social Security taxes account for $1.56 trillion of tax collected in fiscal 2024, half of which is from tax withheld from employee wages. Total tax collected by the I.R.S. in fiscal 2024 was $5.1 trillion. Tax withheld from employee wages ($2.8 trillion plus $0.75 trillion) thus accounted for approximately 70% of all tax collected in that year.

Robert Horwitz a Principal of Hochman Salkin Toscher Perez P.C. has over 40 years of experience as a tax attorney specializing in the representation of clients in civil and criminal tax cases, including civil audits and appeals, tax collection matters, criminal investigations, administrative hearings and in civil and criminal trials and appeals in federal and state courts. He has served as a member of the Executive Committee of the Taxation Section of the State Bar of California and was Chair of the Taxation Section for 2015-2016 year. He was previously Chair of the Tax Procedure and Litigation Committee of the State Bar Taxation Section. He is the 2022 recipient of the California Lawyers Association Joanne M. Garvey Award for lifetime achievement and outstanding contributions to the field of tax law.

For more information, please contact Robert S. Horwitz at horwitz@taxlitigator.com


Leave a comment

Categories