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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Where’s the outrage over businesses stealing $58 billion?

Where’s the outrage over businesses stealing $58 billion?

Businesses owe IRS $58 billion

WASHINGTON — More than 1.6 million businesses owe the federal government in excess of $58 billion in delinquent payroll taxes, interest and penalties, including money withheld from employees’ salaries, a congressional report says.

Payroll taxes include money withheld by employers for federal income taxes, Social Security and Medicare hospital insurance. Increasingly, those taxes aren’t enough: The two massive entitlement programs are headed toward insolvency unless taxes are raised or benefits slashed.

“Payroll tax cheats are stealing from honest Americans, shortchanging the Social Security and Medicare trust funds, and undermining confidence in the tax system as a whole,” Sen. Carl Levin, D-Mich., chairman of the subcommittee that requested the report, said in a statement. “The IRS has to move forcefully to end this abysmal situation.”

The report found that the payroll tax is the most frequently avoided business tax. By comparison, businesses owe $24 billion in back corporate-income taxes.

“The classic bad behavior of small businesses is to withhold the taxes from their employees and then not pay it over,” said Clint Stretch, of the Deloitte consultancy.


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2 Responses to "Where’s the outrage over businesses stealing $58 billion?"

  1. dadvice1 says:
    It is illegal and needs to be prosecuted. These violators are mainly small businesses so they are hard to go after.
  2. She It I do says:
    Don’t know how true this is
    reporters some times get things a little blown out of proportion
    If it is then the IRS has a back log of work to do
    And with Americas industry and business reputation I wouldn’t doubt it

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