Call Now (800) 681-1295
Close

New York Ambulance Company Owner Pleads Guilty to Employment Tax Crimes

Table of Contents

     

    According to a Department of Justice press release, a New York businessman recently pleaded guilty to failing to pay employment taxes. This story should remind taxpayers who own a business or are responsible for the payroll tax function within a company that there can be severe consequences for those who fail to properly adhere to federal employment tax withholding laws. If you have failed to properly withhold, account for, and pay over amounts withheld from the paychecks of employees, misclassified employees as independent contractors or if you have failed to properly pay payroll taxes, it is in your best interest to contact an experienced tax defense attorney to determine your best options for coming into tax compliance and reduce or eliminate the risk of criminal prosecution.

    Defendant Withheld Employment Taxes, But Used Funds for His Own Benefit

    Court records reveal that Steven Kwestel of Lawrence, New York, was the owner and operator of Courtesy Transportation Inc. The company provided ambulance transportation services in the Brooklyn, New York area. Between 2013 and 2019, prosecutors alleged that Kwestel properly withheld income taxes from the paychecks of Courtesy Transportation employees, but that he failed to pay over such amounts to the IRS. Instead, prosecutors alleged, and Kwestel admitted, to using hundreds of thousands of dollars of withheld income taxes for his and his family’s own benefit.

    The IRS and Department of Justice estimate that Kwestel’s illegal activity caused a tax loss of more than $1.3 million. Kwestel will be sentenced later this fall and could face up to five years in a federal prison. Additionally, he could be sentenced to a period of supervised release to commence upon the completion of his physical prison sentence. Lastly, Kwestel has already agreed to repay $1.2 million to the IRS in the form of restitution, representing the tax loss that he caused.

    Recognizing the Seriousness of Employment Tax Exposures and Coming into Compliance

    As we have indicated before in previous blog posts, paycheck withholding of federal income taxes is the primary mechanism whereby the federal government collects tax dollars from Americans. Thus, it should be no surprise that when business owners or those otherwise tasked with properly adhering to the employment tax withholding regime fail to do so, that criminal investigators and Department of Justice prosecutors can become involved quickly. Although there are methods whereby a taxpayer who has fallen behind on their employment tax obligations can come into compliance while avoiding a criminal tax prosecution, simply ignoring the problem, or continuing the illegal behavior is not one of them.

    If you have failed to properly withhold, account for, or pay over employment taxes, or if you have failed to file a tax return for your business altogether, you should consider contacting an experienced tax defense attorney. Together, you will first determine your level of civil or criminal exposure. Then, you will jointly agree on a strategy to bring you into tax compliance. While you are being represented by a seasoned tax attorney, you won’t have to worry about going up against the IRS alone. Lastly, addressing your or your business’s tax issues means no more losing sleep wondering when the IRS would come knocking.

    BBB Rating

    We Are Here for You

    Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.

    In addition to our main office in Irvine, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, Carlsbad and Sacramento.

    Our office technology allows clients to meet virtually via GoToMeeting. With end-to-end encryption, strong passwords, and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client. 

    Questions about delinquent payroll taxes and trust fund recovery penalty

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    Arizona
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    Texas
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    Nevada
    (702) 997-6465
    Florida
    (786) 999-8406
    Utah
    (385) 501-5934