The former owner of New Shanghai Fashions, a garment assembler in Manhattan, New York, recently pleaded guilty to failing to pay employment taxes, the U.S. Justice Department and Internal Revenue Service (IRS) recently announced.
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Get Your Report Now!Federal investigators found that from the fourth quarter of 2005 through at least the third quarter of 2008, the company failed to collect, truthfully account for, or pay nearly $220,000 in employment taxes. Including matching employer taxes, the former owner must pay a total of $439,918 to the IRS.
In addition to repayment, the owner faces a maximum sentence of 5 years in prison, a maximum of 3 years supervised release and a fine of up to $250,000. Sentencing is scheduled for November 2011.
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