Two business owners were recently indicted by a federal grand jury for allegedly conspiring to defraud the government, for failing to pay over employment taxes and for obstructing the internal revenue laws related to their operation of a temporary employment agency.
According to the indictment, Huong Le and Tien Chau ran a temporary employment agency that operated under at least four names and allegedly paid most of their employees in cash under the table and filed false employment tax returns that underreported the number of employees and did not include the cash payments to those employees.
Le and Chau also allegedly used family members and other individuals as nominees to conceal their ownership of the business and obstructed the investigation by shredding the employment agency’s records and destroying and removing computer discs and computers from the office. Le and Chau face a statutory maximum sentence of five years in prison under the conspiracy and employment tax counts, and three years in prison for obstructing the investigation.
Does your business have unfiled tax returns or unpaid liability due to the IRS? Contact us, we can help.