Nevada business owner and bookkeeper sentenced for employment tax crimes
An owner of several Reno landscaping and rock hauling businesses was sentenced on Tuesday, Oct. 25, 2016 to 10 months in prison for failure to pay over employment taxes.
The bookkeeper for the business was sentenced to 5 years' probation with 3 months home confinement for willful failure to file an employment tax return.
"Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS," said Special Agent in Charge Tara Sullivan.
Documents filed with the court show Kyle Archie of Reno, was the part owner of Reno Rock Inc., GKPA Inc. and D Rockeries Inc.
Archie admitted that he was responsible for day-to-day operations of businesses and that from 2003 through 2009; he had a legal duty to collect, truthfully account for and pay over employment taxes to the IRS.
He further admitted that although he collected these taxes from his employees' wages and held them in trust, he failed to pay them over to the IRS for the third quarter of 2008.
Linda Archie of Reno, who is Kyle's mother, worked as the bookkeeper for Reno Rock Inc., GKPA Inc. and D. Rockeries Inc. and was responsible for maintaining the books and records of the companies and filing documents with various government agencies.
She admitted that between 2003 and 2009, she failed to file employment tax returns on behalf of these businesses to account for the taxes that were withheld from the employees' wages.
In addition to the prison term, Kyle Archie was also ordered to serve 3 years of supervised release.
Kyle and Linda Archie were ordered to pay restitution to the IRS in the amount of $1,235,528.28