{"id":13989,"date":"2015-07-27T15:25:02","date_gmt":"2015-07-27T22:25:02","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=13989"},"modified":"2015-07-27T15:26:56","modified_gmt":"2015-07-27T22:26:56","slug":"business-owner-spent-employment-taxes-for-gym-memberships-furniture-and-other-thing","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=13989","title":{"rendered":"Business Owner Spent Employment Taxes for Gym Memberships, Furniture and Other Things"},"content":{"rendered":"

WASHINGTON D.C.<\/strong><\/p>\n

\n

\"IRS\"<\/a>Rather than paying the employment taxes that were due and owing to the IRS over the four-year period, Jeffrey Normal Jackson<\/strong> diverted money from the company he owns\u00a0Innovative Security Services LLC in Washington D.C., <\/strong>according to officials.<\/p>\n

Jackson used company funds to pay rent and buy furniture for his personal residence, spent more than $21,000 at the men\u2019s clothing store Everett Hall and made other personal expenditures at Nordstrom and Tiffany & Co.<\/p>\n

Jackson also paid more than $10,000 for his gym membership and personal training sessions and paid $10,000 to his childcare provider.<\/p>\n

Today, a federal judge sentenced Jackson to three years and six months in prison for employment tax fraud, officials said.<\/p>\n

\u201cBusiness owners have a responsibility to their employees and the IRS to honestly collect, account for and pay over employment taxes to the IRS,\u201d said Acting Deputy Assistant Attorney General Wszalek<\/strong>.\u00a0 \u201cAs evidenced by today\u2019s sentencing, employers like Jeffrey Jackson, who willfully evade their employment tax obligations, will be prosecuted to the fullest extent and face lengthy terms of imprisonment and substantial financial penalties.\u201d<\/p>\n

Jackson, who currently resides in Maryland, previously pleaded guilty to failing to file federal employment tax returns and failing to pay about $600,000 in employment taxes.<\/p>\n

In addition to three years and six months in prison, Jackson was sentenced to three years of supervised released, ordered to perform 360 hours of community service and ordered to pay $595,687.39 in restitution to the IRS, officials said.<\/p>\n

From 2006 through 2010, Jackson controlled the company\u2019s finances and was responsible for filing the Employer\u2019s Quarterly Federal Tax Returns.\u00a0 He was also responsible for paying over to the IRS the federal income, social security and Medicare taxes, known as Federal Insurance Contributions Act or FICA taxes, that were withheld from the wages of Innovative\u2019s employees, according to authorities.<\/p>\n

Officials said Jackson has a previous federal conviction related to the theft of employment taxes.<\/p>\n

In 2006, he pleaded guilty to bankruptcy fraud after he stole $373,429.57 from a bank account that was set up to pay the payroll taxes for Jackson\u2019s former company, Unlimited Security Inc., while that company was proceeding through Chapter 11 bankruptcy.<\/p>\n

In that case, officials said Jackson used the stolen funds to support a boxing promotion business that he controlled and to pay professional boxers.<\/p>\n","protected":false},"excerpt":{"rendered":"

WASHINGTON D.C. Rather than paying the employment taxes that were due and owing to the IRS over the four-year period, Jeffrey Normal Jackson diverted money from the company he owns\u00a0Innovative Security Services…<\/p>\n","protected":false},"author":1,"featured_media":2782,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[1725,424],"class_list":["post-13989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-irs","tag-tax-fraud"],"yoast_head":"\nBusiness Owner Failed to Pay Employment Taxes<\/title>\n<meta name=\"description\" content=\"A Washington D.C. business owner failed to pay employment taxes to the IRS. 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