January 29, 2022

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Scorching Springs Village Businessman Pleads Guilty to Not Paying Employment Taxes and Failure to File A Tax Return | USAO-WDAR

Very hot SPRINGS, Ark.—A Very hot Springs Village company operator pleaded guilty yesterday to one depend of willfully failing to pay back above work taxes and 1 depend of failing to file a tax return.

Main U.S. District Decide Susan O. Hickey presided over the plea hearing, in which Donald Lee Owen, 61, waived indictment by a grand jury and pleaded responsible to a prison details charging him with violating two diverse federal statutes.

According to court paperwork, Owen owned and operated Countrywide Golf Classics, Inc. also regarded as All American Classics, situated in Very hot Springs Village. The business generated sports activities memorabilia for use in charity auctions and executed charity auctions. From 2010 by means of 2018, Owen’s corporation paid wages to staff and withheld work taxes from people wages. These taxes included federal profits tax, Social Safety tax, and Medicare, also regarded as the “believe in fund” taxes. Owen hired an accounting company to work out the taxes due and to put together the IRS Forms 941, Businesses Quarterly Federal Tax Return, for reporting individuals taxes to the IRS. Nevertheless, Owens did not basically file individuals kinds with the IRS, as he was essential to do, nor did he pay out about the employment taxes due to the IRS.

From 2010 via 2018, Owen willfully failed to file Forms 941 with the IRS, and to spend the at the very least $818,158 in work taxes to the IRS, irrespective of getting enough money to do so.

Courtroom files also expose that through the period of time when the work taxes had been thanks to be paid out to the IRS, Owen selected to spend hundreds of thousands of dollars to his company’s lenders, $800 for each thirty day period for a tract of true estate possessing nothing at all to do with the enterprise and transferred $1,000 per thirty day period to a family members member to spend his share on a cabin they ended up acquiring on the Buffalo River.

In addition, Owen failed to pay out $430,000 of the employer portions of the employment taxes and Federal Unemployment Tax Act taxes. Owen also failed to pay out $169,883 to the condition of Arkansas that ended up withheld from his employees’ wages. This negatively impacted various employees who did not obtain credit score with the Social Stability Administration for wages attained and taxes withheld. At the exact same time, Owen made use of the supplemental resources to help a lavish lifestyle, which includes obtaining and increasing a luxury dwelling in Scorching Springs Village, acquiring 32.6 acres in Newton County, a cabin on the Buffalo River, a 2017 GMC Yukon SUV for which he paid $64,206, and a 2016 39-foot Tiffin Allegro leisure auto with a checklist rate of $188,099.

When audited by the Arkansas Department of Finance on two occasions—on September 19, 2013 and on July 19, 2018—Owen falsely informed the auditors he did not have frequent personnel, but alternatively utilised spouse and children and pals to support him in the course of active season. Having said that, when approached by staff who had not gained credit score with the Social Safety Administration for wages acquired and work taxes withheld, Owen admitted he had not claimed or paid around the work taxes to the IRS.

Owen’s next cost relates to his willful failure to file a personalized federal earnings tax return for the calendar year 2018. Owen acknowledged he understood he was needed to file a tax return and that he willfully failed to do so. In addition, Owen unsuccessful to file and pay back $301,544 of his federal and $69,405 of his Arkansas condition own revenue taxes for the several years 2008 through 2018. Lastly, Owen also failed to file and his company’s federal company cash flow taxes for the years 2014 as a result of 2018.

As a consequence of his responsible plea, Owen may be sentenced to a most of six several years in jail. The courtroom will establish his sentence at a later day, immediately after reviewing a pre-sentence investigation report geared up by the U.S. Probation Workplace and thinking about the U.S. Sentencing Tips and other statutory elements.

Performing U.S. Attorney David Clay Fowlkes of the Western District of Arkansas designed the announcement.

The Inside Earnings Services-Criminal Investigations are investigating the case.

Assistant U.S. Attorney Steven Mohlhenrich is prosecuting the scenario for the United States.