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California CEO pleads guilty in employment tax scheme

IRS, Back year taxes, Business, Tax Fraud

[vc_row][vc_column][vc_column_text]A California CEO of several inventory software development businesses had significant control over the finances of these companies from 2008-2017.

The CEO had a legal responsibility to account for and pay employment taxes to the IRS. He instructed these businesses to withhold employee taxes from paychecks, but he did not fully pay the withheld taxes to the IRS. The CEO caused the businesses to spend thousands of dollars for his personal benefit, resulting in these businesses failing to pay more than $4.9 million in payroll taxes, penalties, and interest.

The CEO pleaded guilty to tax fraud and faces a maximum penalty of five years in prison and a period of supervised release. Restitution and monetary penalties will be determined by a federal district court judge at sentencing.[/vc_column_text][us_image image=”2520″][/vc_column][/vc_row]