FEDERAL COURT ORDERS STONE IMPORTER TO PAY PAYROLL TAXES AS THEY BECOME DUE

FROM:  U.S. JUSTICE DEPARTMENT  

Monday, January 4, 2016

Court Permanently Enjoins Baltimore-Area Importer of Stone From Accruing Payroll Tax Liabilities

A federal court has ordered a Baltimore-area importer of marble and granite to pay its payroll taxes as they become due, the Justice Department announced today.  Judge Ellen L. Hollander of the U.S. District Court for the District of Maryland entered a permanent injunction requiring Alexander Stone Inc. d/b/a MMG Marble & Granite and its owners, Soultana Efthimiadis and Kyriakos Efthimiadis, to pay their federal payroll tax liabilities as they became due and owing.

According to the United States’ complaint, Alexander Stone has repeatedly failed to make timely and adequate federal employment tax deposits since 2008 and has amassed substantial employment tax liabilities.  The defendants agreed to entry of the injunction but did not admit or deny the substance of the allegations in the United States’ civil complaint.

Under the terms of the injunction, the business must deposit its payroll taxes and file its employment tax returns on a timely basis.  The defendants are also required to notify the Internal Revenue Service (IRS) that the requisite tax deposits have been made and tell the IRS if they begin operating any new business.  The defendants are precluded from assigning property or making any payments to other creditors until the employment tax and withholding liabilities are paid.  The injunction is effective immediately and will ensure that Alexander Stone stays current on its federal employment tax obligations.  Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked IRS Field Collection and its revenue officer for investigating and preparing the civil case.

DOJ WANTS CONSTRUCTION FIRM TO PAY WITHHELD EMPLOYMENT TAXES

The following is from the Department of Justice website:

Tuesday, August 16, 2011

WASHINGTON - The United States has filed a lawsuit in an Iowa federal court against a Des Moines, Iowa, metro area company, Advanced Underground Construction LLC and its principal, William David Ward II, the Justice Department announced today.  The civil injunction suit asks the court to stop the defendants’ alleged repeated failures to pay to the U.S. employment taxes that are withheld from employees’ wages.

The government complaint alleges that between the third quarter of 2004 and the present date, the defendants repeatedly failed to make required employment tax deposits to the United States for nine quarters, instead using taxes withheld from employees’ wages as working capital, a practice sometimes referred to as “pyramiding.” The government’s complaint further alleges that the defendants’ misconduct has resulted in a balance due to the government of more than $370,000.

According to the complaint, the defendants have made minimal payments of their tax debts, and government attempts to induce voluntary compliance have failed. The complaint seeks an injunction requiring the defendants to timely deposit and pay withheld employment taxes, and to timely file all employment tax returns."