Employer Jailed for Paying Under the Table

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Wednesday, December 24, 2008

Employer Jailed for Paying Under the Table

The owner of a Palm Beach County construction company was sentenced Dec. 5 to four years in prison for engaging in a payroll tax evasion scheme. Leroy Edward Felt Jr., the owner of Woody's Construction Inc., pled guilty to underpaying about $2 million in federal payroll taxes between 1997 - 2003, prosecutors announced (United States v. Felt, S.D. Fla., No. 08-80021-CR-Hurley, sentencing 12/5/08). Mr. Felt conspired to defraud the Internal Revenue Service by paying cash wages to many of Woody's employees and thus did not withhold or pay payroll taxes on these wages, the statement said.

The IRS website lists multiple cases of prosecution for employment tax fraud. HomeWork Solutions Inc. is the nations's leading preparer of "Nanny Tax" returns and an industry expert in payroll and compliance issues for any type of domestic employment situation. We offer fast and confidential catch-up services to families in arrears of their household employment payroll tax (nanny taxes) reporting obligations.

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