A New Hampshire man has been sentenced for $14M tax avoidance as a result of an IRS Criminal Investigation.
Andrew Park, 49, of Bedford, was given a two-and-a-half-year custodial sentence for knowingly avoiding payment of more than $14 million in payroll taxes and himself failing to file personal tax returns.
The IRS Criminal Investigation provided the details for prosecuting Park, handled by Assistant Chief Eric Powers of the Tax Division and Assistant U.S. Attorney Matthew Hunter for the District of New Hampshire.
New Hampshire man sentenced for tax dodging
Park became the source of the IRS investigation as the co-founder and CEO of a startup technology company. In this role, Park was the sole financial person responsible for company payroll, quarterly employment tax returns, and vital things like the insurance payment and tax processes to Social Security, Medicare, and other payments to the IRS.
According to court documents, Park’s company, founded in 2014, would fail to submit the proper tax returns and pay federal taxes on employee’s wages.
Court papers showed Park “did not pay over the portion of the employment taxes that the company owed. Park willfully failed to do so even though a payroll service company that he hired to process the employees’ payroll regularly notified him that the taxes were due.”
Park took home a salary in excess of $250,000 each year, in the time he took this wage (2013 through 2020), he did not file individual tax returns as required by federal law.
“In total, Park caused a tax loss to the IRS exceeding $14 million,” said the Justice Department as part of his sentencing.
U.S. District Chief Judge Landya B. McCafferty for the District of New Hampshire also instructed Park to “serve three years of supervised release and to pay $639,821.78 in restitution to the United States and a fine of $15,000.”
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