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Failure to Pay Employment Taxes Leads to Jail

failure to pay employmentDr. Anthony P. Sertich, Jr., faces up to 55 years in federal prison. Jurors found Sertich, 59, guilty of 10 counts of failure to account and turn over to the IRS the payroll taxes he collected from the employees in his practice.

Instead of paying his payroll taxes, Sertich paid himself millions of dollars in salary, which in turn paid for personal expenses such as a large mortgage and interest payments, real estate tax payments and alimony payments.  He also filed four personal and one corporate bankruptcy petitions, all but one of which was subsequently dismissed by the court.

Special Agent in Charge William Cotter of the IRS Criminal Investigation unit in San Antonio said “The jury’s guilty verdict of Dr. Anthony P. Sertich Jr. represents IRS Criminal Investigation’s
continued commitment to identifying and prosecuting those individuals who evade the tax laws…The tax law is very clear – every employer is responsible for withholding employment taxes from the salaries of their employees. Those employers who do not withhold employment taxes are breaking the law.”

Sertich got the withholding part right, but he never sent the money to the government.