Defendant Withheld Taxes from Employees Then Failed to Pay Them to the IRS
5 October – LAWFUEL – The Law News Network – The United States Attorney’s Office for the Northern District of California and the Internal Revenue Service – Criminal Investigation announced that David Lopez Quintana, 39, of Pleasanton, California, pleaded guilty to one count of willful failure to pay employment taxes to the IRS. Mr. Quintana appeared before United States District Court Judge Claudia Wilken in Oakland on Monday, October 3, 2005. He was indicted by a federal grand jury on December 9, 2004.
According to his plea agreement, Mr. Quintana owned several businesses related to pagers, cell phones, and car stereos between 1998 and 2000. Mr. Quintana was required to collect and pay over the taxes that he withheld from his employees. Beginning in the third quarter of 1998, Mr. Quintana began failing to pay over employment taxes to the IRS. According to the plea agreement, Quintana’s pattern of not complying with the federal tax laws continued to the forth quarter of 2000 and totaled $673,013.86. Mr. Quintana admitted that he failed to pay the IRS a total of $421,987 in federal income taxes that he withheld from his employees’ wages. Quintana also admitted that he failed to pay $251,025 of Federal Insurance Contribution Act (FICA) taxes.
Federal law requires that employers collect, account for, and pay over payroll taxes withheld on behalf of their employees. These taxes include both federal income taxes and FICA taxes (Social Security and Medicare taxes). Federal law also requires that employers pay a share of FICA taxes.
According to the indictment, Mr. Quintana was a resident of Danville, California from 1998 to 2000, and was the president for TCCG, Inc., a corporation and holding company for Progressive Auto Stereo, OCCG, Inc., Bayfair Auto Stereo, Car Stereo Warehouse and San Leandro based Beeper City.
Mr. Quintana is scheduled to appear before United States District Court Judge Claudia Wilken on January 10, 2005 at 2 p.m.
The maximum statutory penalty for violation of willful failure to account for and pay over withheld payroll taxes, in violation of 26 U.S.C. Section 7202 is five years in prison, three years of supervised release, and a fine of $10,000.
The investigation was conducted by special agents of the Internal Revenue Service – Criminal Investigation. Kimberly Briggs is the Assistant U.S. Attorney who is prosecuting the case.