He failed to pay taxes to the IRS and created false records, ultimately sinking his company.
A Nebraska businessman was sentenced to one year and one day in prison for failing to pay federal taxes.
Delving Deeper
Rolley D. Bennett Jr., 53, of Omaha, Nebraska, was also ordered to pay $31,576.19 in restitution.
Bennett was the controller of the Diesel Power Equipment Company, headquartered in Omaha. During the period of 2013 and 2014, he failed to pay approximately $879,000 in payroll trust fund taxes to the IRS.
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The Business
Diesel Power distributed and repaired diesel engines, generators, pumps, parts, and accessories, primarily to the mining, railroad, industrial equipment, and agricultural irrigation industries.
Bennett’s failure to make the payroll tax payments resulted in Diesel Power ultimately going out of business.
Bennett took steps to conceal the nonpayment of Diesel Power’s employment taxes, including creating cash flow reports that reported the employment tax liabilities had been paid and creating journal entries in the company’s general ledger, which accrued the employment tax liabilities and their associated payments.
Photo by Wesley Tingey on Unsplash
This Tax Case Verdict
“Failure to remit those employment taxes resulted in the loss of tax revenue to the government and the possible loss of future Social Security or Medicare benefits for the employees,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.
©2019
Featured image by Larry Farr on Unsplash
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