YOU MAY HAVE SEEN TODD SPODEK ON THE NETFLIX SHOW INVENTING ANNA
When you’re facing a federal issue, you need an attorney whose going to be available 24/7 to help you get the results and outcome you need. The value of working with the Spodek Law Group is that we treat each and every client like a member of our family.
Client Testimonials
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THE BEST LAWYER ANYONE COULD ASK FOR.
The BEST LAWYER ANYONE COULD ASK FOR!!! Todd changed our lives! He’s not JUST a lawyer representing us for a case. Todd and his office have become Family. When we entered his office in August of 2022, we entered with such anxiety, uncertainty, and so much stress. Honestly we were very lost. My husband and I felt alone. How could a lawyer who didn’t know us, know our family, know our background represents us, When this could change our lives for the next 5-7years that my husband was facing in Federal jail. By the time our free consultation was over with Todd, we left his office at ease. All our questions were answered and we had a sense of relief.
Employers are required to withhold federal income and payroll taxes from employee wages. These taxes have to be paid to the IRS. Withheld payroll taxes are referred to as trust fund taxes, because the employer holds the money in a trust until a federal tax deposit is made for that amount. Sec. 6672(a) mentions that any person required to collect, truthfully account for, and pay over any tax imposed by the internal revenue code who fails to do so, will, in addition to to other penalties provided by the law, be liable to a penalty equal to the total amount of the tax not collected. The term any person, is critical because it allows the IRS to pierce the corporate veil, and proceed against anyone responsible for the corporation’s failure to pay trust fund taxes. It makes the person liable for the employer’s unpaid payroll taxes. As a result, the penalty can be imposed on the person, regardless of the business entity.
Both the person responsible, and the willful failure tests have to be met in order for the trust fund recovery penalty to apply. Once this penalty is assessed, the person held responsible has the burden of disproving both elements.
The Responsible Person Test
The IRS and the courts define a responsible person broadly. The main element in determining responsible person status is whether a person had a statutorily imposed duty to make the payments. Several factors indicate responsibility:
If you are looking for a lawyer that listens, is aggressive where needed, and holds his word above all else, Todd is the best pick. I had hired multiple attorneys prior to hiring the Spodek Group for a white collar case. The first thing that stood out to me was the cost, as anyone going through the process and dealing with the system, money was tight at that time - especially after hiring and firing multiple lawyers. The cost was not as high as others which was definitely a plus. Todd's intake process was also unlike other attorneys. He took the time to actually listen. He cared. He was trying to put himself in my shoes while I was explaining the situation to him and he really took the time to understand the whole situation. Other lawyers will give you 15 mins and send you a retainer agreement. Not Todd, I think he spent almost two hours with me as I was explaining everything.Not only was he great during the onboarding process, he was supportive and very informative through the entire plea process and eventually sentencing. After hiring him, I asked if I should hire a prison consultant, he told me to save my money as he would do everything they would. He was right and held up to his word. Later on I would hear from others that went with the prison consultants that they were a waste of money - I am glad I listened to Todd!When it came time for sentencing, two days prior to sentencing, the prosecutor tried increasing my proposed prison time by almost double - apparently a normal move. Todd and his team worked with me non-stop through the weekend prior to sentencing to ensure that I was not given additional prison time. Again, he took the time to listen and came up with a strategy to explain the case with great detail.Unfortunately, I did plead guilty as that was my best option. Todd and his whole team wrote up nearly 300 pages of a summary of what happened and why I should not be given prison time. If I breakdown the amount I spent with Todd versus the amount of work that I saw being done, I am shocked I was not charged four times as much. The other benefit was, a lot of criminal defense lawyers were just a single attorney with a paralegal or two. Todd had a team of people that I dealt with (5-7 people that I interacted with), but he was ALWAYS accessible. It would never take him more than an hour to reply unless he was in court.I was sentenced to prison and I was emotionally distraught. Todd and his team did whatever they could even after sentencing to make sure I was alright. He personally stayed in touch with my family to ensure I was doing alright and offered support to them. Most lawyers would consider the job complete at sentencing, not Todd.After prison, Todd still spent time with me to make sure I was on the right track and avoiding any potential risks in the future. He has also been giving advice on how to navigate probation etc and has not been looking at the clock for billing.Although I wish I had never been arrested in the first place, I am glad I had Todd and his team in my corner. Without them I likely would have had to spend a lot more time in prison than I did.Thank you, Todd, and the entire Spodek Law team, for helping turn what was a nightmare into a manageable situation!
I am immensely grateful to the entire team at Spodek Law Group for their unwavering dedication and exceptional expertise throughout my case. From our initial consultation to the final resolution, their professionalism and tireless advocacy made all the difference. Their strategic approach and attention to detail instilled confidence in me every step of the way.Thanks to their hard work and commitment, we achieved a truly favorable outcome that exceeded my expectations. Not only did they navigate the complexities of my case with precision, but they also provided invaluable support and guidance during what was undoubtedly a challenging time. I cannot recommend Spodek Law Group highly enough, especially attorneys Todd Spodek and Claire Banks; they are beacons of excellence in the legal profession.YSP.
Todd, Ralph and Alex are amazing. Helped my husband get from a double digit number with multiple charges to a single digit, by the time I blink he will be out. They very professional and help with all your needs. They dealt with my anxiety and worry very well and they understand that your family member needs to get home as soon as possible.
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.Thank you team!
I recently had Spodek Law Group represent me for a legal matter in NYC and I am thoroughly impressed with their services.Alex Zhik secured the best possible outcome for my case.It was a seamless journey from the initial consultation to the resolution of my legal matter. From the moment I spoke to Todd about my case, his enthusiasm to help was evident, setting a positive tone for the entire experience. The efficiency and professionalism displayed by the team is commendable.A particularly noteworthy aspect of their service is their user-friendly portal to upload your documents/evidence. This not only simplified the process, but showcases their commitment to streamline the client experience.Lastly, in an industry where legal fees can often be a concern, I found their pricing to be very reasonable, making needing legal assistance feel accessible and stress-free.I am grateful for their support and wouldn't hesitate to turn to them again in the future.
-The person has power to compel, or prohibit the allocation of funds
-Has authority to sign checks
-Has authority to make decisions to the disbursement of funds/payments of creditors
The list above isn’t exhaustive, but a good start to understand the fact the IRS looks at the person’s status, duty, and authority, to determine whether a person is responsible for paying over withholding taxes to the US. The IRS Policy Statement 5-14(Internal Revenue Manual §1.2.14.1.3), states that individuals who are non-owner employees performing ministerial acts without exercising independant judgement will not be held responsible.
Often, company officers don’t want to deal with accounting or tax matters. It’s not uncommon for a director to instruct an employee to take care of paying payroll taxes. If the employee fails, then officer should be worried. Delegation of authority doesn’t relieve a person of being accountable/responsible to collect/pay taxes to the IRS. The courts have ruled that the authority that permits controls, carries a duty to ensure that withholding of taxes is being properly done and paid to the government(Purcell, 1 F.3d 932 (9th Cir. 1993)).
The trust fund recovery penalty can be assessed against a corporate officer who fails to pay withheld taxes at the direction of a supervisor if the funds are available. The threat of being fired by a supervisor for paying taxes will not make the person less responsible for paying the taxes owed. Courts have ruled that officers aren’t allowed to do what allows them to keep employment over that of paying the government. A former president of a corporation can be considered responsible if he/she continues to retain authority to sign checks, and negotiate with the IRS, or owns stock in the corporation, or manages day to day business operations, or make decisions regarding the disbursement of money/payment to creditors.
What is willful failure
In terms of Sec. 6672, a failure to remit tax funds is considered willful, if it’s conscious, intentional, as opposed to accidental. Courts have decided that willfulness is true if a taxpayer knew of the nonpayment, or disregarded whether payments were being made or not.
How bad can it get
The IRS is very aggressive in assessing a trust fund penalty. Payroll taxes are the government’s money. The government believes those who don’t pay, are taking it’s money. The government will be relentless in its effort. With numerous employees, unpaid trust fund taxes pile up quickly. This penalty isn’t dischargeable in bankruptcy. Failing to pay trust fund taxes can lead to criminal charges. Under Sec. 7202, willful failure to pay or collect taxes is a felony punishable by up to a $10,000 fine or 5 years in prison. The IRS reservers criminal charges for the worst of cases, where a responsible person owned the business and diverted the money for personal use.
Criminal Prosecution
Anyone responsible under Sec. 6672, can be liable under Sec. 7207. This can apply to corporate officers, employees, and anyone responsible for collecting and paying taxes. The IRS generally targets owners who used funds for their own benefit. Courts have held Sec. 7202 creates three obligations – a person must collect, account for, and pay the taxes. If the person doesn’t do these 3 things, then he/she is in violation.
