Business Owner, Mother Guilty of Tax Evasion

Business Owner, Mother Guilty of Tax Evasion

A Reno, Nevada business owner and his mother, a bookkeeper, have pleaded guilty to federal employment tax crimes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.

Kyle Archie, 44, part owner of Reno Rock Inc., GKPA Inc. and D Rockeries Inc., pleaded guilty to one count of failure to file over employment taxes. His mother, Linda Archie, 67, pleaded guilty to one count of willful failure to file taxes. The crimes occurred between 2001 and 2010.

According to court documents, Kyle Archie admitted to collecting federal income taxes and Federal Insurance Contribution Act taxes from employees’ wages but failed to pay them over to the Internal Revenue Service (IRS) for the third quarter of 2008. Linda Archie, the bookkeeper for the businesses, failed to file Employer’s Quarterly Federal Tax Returns (Forms 941) on behalf of the companies to account for the taxes withheld from employees’ wages.

U.S. District Judge Miranda M. Du set sentencing for August 15. Kyle Archie faces a statutory maximum sentence of five years in prison and a $250,000 fine. Linda Archie faces a statutory maximum sentence of one year in prison and a $100,000 fine. Both defendants have agreed to pay restitution to the IRS, with a tax loss estimated at $1,242,260, and admitted to causing a loss to the IRS of at least $545,000.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Carla B. Higginbotham of the District of Nevada and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.

The case is a reminder of the importance of paying employment taxes and the consequences of failing to do so. The public can learn more about the Tax Division’s enforcement efforts on its website.

Both Kyle Archie and Linda Archie are scheduled to be sentenced on August 15. Their actions have caused a significant loss to the IRS, and they will now face the consequences of their crimes.