Shane Brightpath Mike, Employment Tax Violations, California 2014

California Man Fails to Pay Over $1 Million in Employment Taxes

A California man has been accused of failing to pay over $1 million in employment taxes, a crime that could land him in prison for up to five years. Shane Brightpath Mike, the former president and chief operating officer of Excel Behavioral Services Inc., pleaded guilty to the charges in a federal court.

According to court documents, Mike was responsible for withholding Social Security, Medicare, and income taxes from his employees’ wages and paying those funds to the IRS. However, for the fourth quarter of 2014 through the third quarter of 2015, Mike did not pay any of the withheld taxes to the IRS. He also only paid part of the funds withheld for the third quarter of 2014.

During the same time, Mike used his company’s funds to pay his personal expenses. He also filed false personal income tax returns for tax years 2014 and 2015, claiming credit for federal tax withholdings from wages he received from his company, knowing that such had not been paid over to the IRS.

The total tax loss to the IRS was $1,177,947. Mike is scheduled to be sentenced on September 24 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties.

IRS Criminal Investigation is investigating the case, and Assistant Chief Matthew J. Kluge of the Justice Department’s Tax Division and Assistant U.S. Attorney Sarah E. Griswold for the Northern District of California are prosecuting the case. Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Ismail J. Ramsey made the announcement.

Mike’s actions are a stark reminder of the importance of paying employment taxes and the consequences of failing to do so. The IRS relies on these taxes to fund vital programs and services for American citizens.

Shane Brightpath Mike’s case serves as a warning to businesses and individuals who fail to pay their fair share of taxes. The consequences can be severe, including imprisonment, fines, and restitution. It is essential for everyone to take their tax obligations seriously and pay their taxes on time.

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