A Kansas business owner has been sentenced to 17 months in prison for failing to remit over one million dollars in employment tax collections to the Internal Revenue Service (IRS).
Court documents reveal that Marvin Vail, 53, from Gardner, pleaded guilty to one count of failure to account for and pay over employment taxes. As the proprietor of Marvin's Tow Service, Inc. in Gardner, Kansas, Vail neglected to pay employment taxes for at least 23 calendar quarters between 2012 and 2017. Employers are mandated to withhold Federal Insurance Contribution Act (FICA) taxes and income taxes from employee wages and forward these amounts to the IRS.
During an investigation by IRS-Criminal Investigation agents, it was discovered that Vail prevented the office administrator of Marvin's Tow Service from paying the federal taxes owed.
In addition to his prison sentence, a federal judge ordered Vail to pay $1,512,283 in restitution to the IRS.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Scott Rask.