Man Pleads Guilty to $20 Million Tax Fraud

[nitpicker]

https://www.justice.gov/usao-sdtx/pr/man-pleads-guilty-20-million-tax-fraud

Department of Justice
U.S. Attorney’s Office
Southern District of Texas

FOR IMMEDIATE RELEASE
Thursday, November 8, 2018

Man Pleads Guilty to $20 Million Tax Fraud

HOUSTON – A man who had owned Stat Source Inc. has admitted he willfully failed to truthfully account for and pay over employment taxes to the IRS, announced U.S. Attorney Ryan K. Patrick. Jonathan Adam Van Pelt withheld federal income taxes and Social Security and Medicare taxes from the wages of employees for one employment tax quarter. However, he did not timely file the required Employer’s Quarterly Federal Income Tax Return for that quarter reporting the withholdings and did not pay over the withholdings to the IRS.

In the plea agreement filed in the record of the case, Van Pelt admitted the total employment taxes he failed to pay to the IRS for Stat Source Inc., was more than $20 million, the amount owed for 18 employment tax quarters running from the third quarter of 2011 through the fourth quarter of 2015. Van Pelt admitted he spent the money owed on the unpaid employment taxes on various luxury items, such as luxury automobiles, expensive furniture, leather goods, jewelry, an expensive home, lavish vacations and various entertainment venues.

He has agreed to pay $20 million in restitution to the IRS.
(snip)

[KCDebbie]

1. This is a dilemma that the IRS faces often...

When it is found that an employee is not paying over withholding to the IRS, someone decides whether to shut down the company, throw all those employees out of work and attempt to prosecute the owner for tax theft

OR

Negotiate with the owner to settle the tax debt while keeping the company open and the employees working...

[Scruffy1]

2. It sems to b a temporary staffing agency.

I would assume that any emplyees would simply move to another agency. There is no reason for his ass not to be in jail.