Interesting Tax Court case for officer / shareholder / employees
If the client can't make a timely 941 deposit, maybe he shouldn't claim credit for the withheld income tax. (Note that this case was extremely egregious.)
Mark W. May and Cynthia R. May v. Commissioner.
Husband was a corporate officer (and employee, and shareholder), and
failed to have the corporation pay in the federal & state income tax
withholding from his (or any other employee's) wages. But when he
filed his 1040, he claimed credit for all the withholding shown on his
W-2, and deducted as state income taxes the state withholding shown on
He ended up with a tax evasion conviction, and a fraud penalty. "Even
though he was technically subject to tax withholding, we believe Mr.
May is more analogous to a person filing a completely falsified Form
W-2, given his knowledge and participation in failing to remit the