Contractor Pockets a Million in Payroll Taxes – Goes Directly to Jail

Kevin Alexander, the owner of a construction company in Iowa, was sentenced to two years in prison for failing to pay over employment taxes owed by his company.

From 2014 to 2017, Alexander paid 3.8 million dollars in wages to his employees, and withheld approximately one million dollars in income, social security and Medicare taxes, but failed to pay those withholdings to the IRS.

In addition to the prison sentence, he was ordered to serve two years of supervised release and pay 1.7 million dollars in restitution to the IRS.