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Dallas Man Sentenced to 24 Months in Prison for Payroll Tax Evasion
DALLAS, Texas – A local man who admitted failing to pay over payroll taxes for tax years 2008 through 2012 was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Luis Morales was sentenced by U.S. District Judge Terry R. Means to 24 months in federal prison and order to pay approximately $209,000 in restitution. Morales pleaded guilty in January 2015 to an information charging one count of failure to pay over payroll taxes.
According to the factual resume filed in the case, in June 2008, Morales formed A Staffing Solution, LLC and was listed as the organizer, registered agent and sole manager with the State of Texas. A Staffing was a temporary employment agency in the Dallas/Fort Worth area, and was operated by Morales until the end of January 2010. In January 2010, Morales formed Morales Employment Services (“MES”). MES operated with the same employees and clients that had previously been with A Staffing.
In March 2010, according to the factual resume, Morales, with the assistance of Manuel Chavez, formed MES & Company (“MES & Co.”). MES & Co. operated with the same employees and clients that had previously been with A Staffing and later MES. Chavez pleaded guilty to a separate information in February 2015 and was previously sentenced to serve 36 months probation and pay $142,320.71 in restitution.
Morales admitted that for tax years 2008 through 2012, according to the factual resume, he deducted and collected from the total taxable wages of his employees federal income, social security and Medicare taxes. Morales further admitted that he willfully failed to truthfully account for and pay over to the Internal Revenue Service all of the federal income, social security and Medicare taxes withheld. Morales used the retained withheld taxes for personal use.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Brian Poe prosecuted.
Morales is currently scheduled to begin serving his sentence. He will also be required to pay $209,000 in restitution to the IRS for the unpaid payroll taxes.
This case is a result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Brian Poe prosecuted the case.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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