Colorado Contractor Guilty of Defrauding the IRS for Nearly SIX million dollars!
A contractor who worked extensively with the Regional Transportation District (RTD) in Colorado pled guilty to defrauding the IRS out of nearly $6 million.
The Denver Post report based on a news release from Jeff Dorschner, the spokesman for the U.S. Attorney’s Office in Colorado, stated that the owner of Global Access, Lucilious Ward, pled guilty to one count of failure to account for and pay employment taxes that were withheld from employees’ paychecks. He also pled guilty to one count of making a false claim against the United States.
Ward’s company was paid more than $35 million from 2003 through 2012 for its contract with RTD. The company provided part of RTD’s Access-A-Ride bus services. During that time, it is stated that Ward withheld taxes from his employees’ paychecks but instead of turning the money over to the IRS, he used it to pay for other expenses. Remember, the IRS takes failure to deposit or pay payroll taxes very seriously. Using withheld payroll taxes to pay for other company expenses is a big NO NO and anyone caught doing so will be in deep trouble.
If that wasn’t bad enough, it also seems that Ward filed a fraudulent return to the IRS in 2010 in order to receive a refund of $76,479. Very bad move…
For each count against him Ward faces up to 5 years in federal prison and a fine of up to $250,000. He also owes $5,955,866 in restitution. Ouch!
Don’t follow or let your company follow this path of extremely bad tax decision making. If you have problems with or are confused by your payroll taxes make sure you get professional help and address the problem right now. Most importantly, don’t be tempted to file a fraudulent return to make a bit of extra money. No amount of refund is worth being locked up in prison or facing the wrath of a cheated IRS.
You can read the original Denver Post article here. http://www.denverpost.com/news/ci_24842126/rtd-contractor-guilty-defrauding-irs-out-almost-6