An electrical contracting business owner has been convicted of using withheld payroll taxes to buy personal vehicles and give money to family members. According to the Tri-City Herald, the owner of Townsend Controls, Inc. in Pasco, Wash., failed to pay the IRS $2.6 million in taxes after deducting the money from employees' paychecks.
The attorneys said Maria Townsend withheld employment taxes from the wages of the Local 112 members that the company employed, as well as its other non-union employees. They were paid weekly.
However, instead of turning those withheld taxes over to the IRS within the required two business days after each payroll date, Townsend kept it for personal use. The attorneys said she also made large disbursements of corporate funds to relatives, according to the Tri-City Herald's report.
Read more here: Tri-City Herald
