Not only does our government’s array of civic and federal services run on tax remittances, ‘trust funds’ remitted to the U.S. Treasury make up employee retirement benefits. Yet, all too often, when a company faces cash-flow problems, temptation arises.
When struggling businesses cannot pay bills or make payroll on time, unscrupulous businesses elect to access funds earmarked for the government. Gambling their employees’ futures and their own, they assume that they can make up the difference with some boon of future earnings. It becomes a costly miscalculation.
If a struggling company of 20 employees (or more) commits this violation repetitively, it compounds into full-blown trust fund fraud. Over time, the result can be a tax debt totaling millions of dollars. By law, someone will pay.