A West Virginia man has been sentenced to a few years in jail for failing to pay employment taxes withheld from his staff’ wages and for obstructing the IRS’ efforts to gather these taxes, the Division of Justice introduced.
In response to court docket paperwork and proof offered in court docket, Christopher Jason Smyth operated Stat EMS LLC, an ambulance service in Pineville, from 2012 by a part of 2017. Previous to founding Stat EMS, Smyth operated one other ambulance enterprise that accrued tens of millions of {dollars} in employment tax liabilities earlier than submitting for chapter. He then created Stat EMS below a nominee proprietor whereas persevering with to run the enterprise in the identical method as earlier than.
Because the operator of Stat EMS, Smyth was liable for withholding Social Safety, Medicare, and revenue taxes from staff’ wages and remitting them to the IRS. Nonetheless, for years, he failed to completely pay these taxes. As an alternative, he diverted firm funds to pay private bills and transferred cash to companies managed by his family and friends. The IRS decided that Stat EMS gathered roughly $3.3 million in unpaid taxes.
When the IRS assessed the unpaid taxes in opposition to Smyth personally and tried to gather them, he engaged in misleading conduct to evade cost. In response to the Division of Justice, Smyth misled an IRS income officer by falsely claiming he had no private financial institution accounts and didn’t use accounts belonging to others. In actuality, he routinely deposited his paychecks into an account held in a relative’s identify. He additionally denied involvement in a number of companies, regardless of having signature authority over their financial institution accounts.
Following his conviction, Smyth was sentenced to a few years in federal jail. The sentence underscores the results of failing to fulfill employment tax obligations and trying to impede IRS enforcement actions.
