News out of the U.S. Department of Justice highlights yet another case of employment tax fraud. This case involves the owner of a Nevada landscaping and rock hauling business that failed to file over federal employment taxes. And in this instance, the bookkeeper (also the mother of the owner) for the businesses also pleaded guilty to one count of willful failure to file taxes. The case goes as follows:
"According to court documents, Kyle Archie, 44, of Reno, was the part owner of Reno Rock Inc., GKPA Inc. and D Rockeries Inc. during the years 2001 through 2010. As part of his plea, Kyle Archie admitted that he was responsible for the day-to-day operations of the businesses and therefore had a legal duty to collect, truthfully account for and pay over to the Internal Revenue Service (IRS) federal income taxes and Federal Insurance Contribution Act taxes that were withheld from the wages of the businesses’ employees during the years 2003 through 2009. Kyle Archie further admitted that although he collected these taxes from his employees’ wages and held them in trust, he failed to pay over the employment taxes to the IRS for the third quarter of 2008.
Linda Archie, 67, of Reno, who is Kyle Archie’s mother, worked as the bookkeeper for Reno Rock Inc., GKPA Inc. and D. Rockeries Inc. during the years 2001 through 2010. In that capacity, she was responsible for maintaining the books and records of the companies and filing documents with various government agencies. In her plea agreement, Linda Archie admitted that between 2003 and 2009 she failed to file Employer’s Quarterly Federal Tax Returns (Forms 941) on behalf of these businesses to account for the taxes that were withheld from the employees’ wages.
U.S. District Judge Miranda M. Du of the District of Nevada set sentencing for Aug. 15. Kyle Archie faces a statutory maximum sentence of five years in prison and a $250,000 fine. Linda Archie faces a statutory maximum sentence of one year in prison and a $100,000 fine. Both defendants have also agreed to pay restitution to the IRS. In the plea agreement, the government asserts that the tax loss is $1,242,260. The defendants have admitted that their actions caused a loss to the IRS of at least $545,000."
If you have any concerns about IRS, tax fraud or other tax crimes, it is always best to get in touch with a criminal tax attorney. The staff of Robert J. Fedor are proficient in negotiating with the Internal Revenue Service and Department of Justice, so contact us with any questions or concerns.