Businessman faces charges for failing to pay payroll taxes
A local business operator is facing federal fraud charges for failing to pay more than $3 million in payroll taxes to the Internal Revenue Service.
Tony M. Tate, 44, of Findlay, was charged Monday in U.S. Northern District Court, Toledo.
According to a written statement, Tate, who is co-owner, vice president and operator of American Digital Technologies Corp. (ADT), a Findlay cable company, is accused of failing to account for and pay to the IRS $3,213,753 in payroll taxes that were due from Tate and ADT from the last quarter of 1998 through 2001.
According to records, $2,350,603 of the total amount were payroll taxes that Tate allegedly withheld from salaries of ADT employees. The remaining $863,150 was matching payroll taxes that ADT was required to pay the IRS.
Under federal law, employers are required to withhold employment taxes, including federal income tax, Social Security and Medicare taxes from their employees.
Employers must report income and employment taxes withheld from their employees on an employer's quarterly federal tax return and deposit those taxes to an authorized bank or financial institution pursuant to Federal Tax Deposit Requirements.
Employers are also responsible for filing a Federal Unemployment Tax Act (FUTA) return annually, and depositing those taxes.
The Criminal Investigation Division of the Internal Revenue Service investigated the case, which is being handled by Assistant U.S. Attorney Seth D. Uram.
Tate has not yet appeared in court on the fraud charges.
Update!!
Article published Wednesday, May 4, 2005
Findlay businessman found guilty in tax case
A Findlay businessman accused of failing to pay more than $3.2 million in federal payroll taxes for employees of his cable company entered into a plea agreement yesterday in U.S. District Court in Toledo.
Tony M. Tate, 44, pleaded guilty to a bill of information charging him with withholding payroll taxes from employees but failing to pay the money to the Internal Revenue Service from the last quarter of 1998 through 2001.
Magistrate Vernelis Armstrong accepted the plea and found Tate guilty of the crime.
Tate faces up to a five-year prison sentence and $250,000 fine, but sentencing guidelines could reduce the punishment to 27 to 33 months.
The sentence will be imposed by Judge James Carr during a hearing that will be scheduled later.
As vice president and co-owner of American Digital Technologies Corp., Tate did not pay $3,213,753 in payroll taxes, including $2,350,603 that was taken from the salaries of employees. He also did not pay $863,150 in matching payroll taxes that the firm was required to submit to the IRS.
In admitting to the crime, Tate told Magistrate Armstrong that as an owner he was involved in its operations, but that he was not chief financial officer. He said that in an attempt to keep the business afloat, decisions were made to pay creditors instead of the payroll taxes.
American Digital, which offers design and cable-installation services for cable and telephone companies, filed for bankruptcy protection in 2002, estimating that it owed between $1 million and $10 million to 16 to 49 parties.
Re: 366 days fom invoice date Utilicom
Member #: 27612
Registered: 12/31/2003
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Name:
Jay Peterson aka Hawkeye
Name:
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splice sweep noise construction
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Mtns of NC
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