Nampa woman pleads guilty to failing to report and pay employment tax | USAO-ID
BOISE – A Nampa woman has pleaded guilty to non-payment and non-payment of labor tax.
According to court records, from approximately 1999 to 2019, Nicole Beth Howerzyl, 69, of Nampa, was a manager of Dave’s Motorcycle, Inc. (DMI) in Nampa. DMI was specialized in the sale and maintenance of motorcycles. During this time, Howerzyl was in charge of DMI’s bookkeeping and exercised control over DMI’s financial affairs, including approving all payments made by DMI and controlling all DMI bank accounts.
For the calendar years 2013 to 2019, DMI employed approximately 15 to 25 people per year. During this period, DMI withheld taxes from the paychecks of its employees, including federal income taxes, Medicare, and Social Security taxes, often referred to as “payroll taxes.” Howerzyl issued paychecks twice a month directly and withheld payroll taxes from employee paychecks. Howerzyl also issued annual W-2 forms to DMI employees, which reflected their gross salaries, as well as their payroll taxes.
As the leader of DMI, Howerzyl was aware that she had a corporate responsibility to collect, accurately account for and pay DMI payroll taxes to the Internal Revenue Service (IRS) and to file a federal income tax return. quarterly from the employer (Form 941). following the end of each calendar quarter.
DMI, however, made no payments to the IRS for calendar years 2013 through 2019. DMI further failed to file quarterly employment income tax returns (941 forms) with the IRS. Specifically, for the 2013 to 2019 tax years, Howerzyl did not record $ 4,874,572.73 in salary at DMI and paid more than $ 1,161,135.25 to the IRS in payroll taxes.
As part of the plea deal with the government, Howerzyl agreed to pay an unpaid restitution to the IRS in the amount of $ 373,552.21.
“Collecting payroll taxes from workers and then not paying those amounts to the federal government is a flagrant breach of trust and is not a victimless crime,” Acting US Attorney Rafael M. Gonzalez, Jr. said. is robbing workers, as well as the public, and hurting all Americans. Those who flaunt federal tax laws need to know that they will be investigated and prosecuted, ”he said.
“Hitting the government by not submitting payroll taxes to the IRS is also a crime against all honest taxpayers because the loss of tax revenue is burdened by everyone,” said Andy Tsui, Special Agent for Criminal Investigations from the IRS. Ms. Howerzyl’s advocacy today serves as an important reminder that the IRS: CI is committed to bringing to justice those who evade their tax responsibilities for their personal gain.
Howerzyl is due to be sentenced on March 15, 2022 and faces a maximum sentence of five years in federal prison, a fine of $ 250,000 and up to three years of supervised release. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho, praised the efforts of the Internal Revenue Service Criminal Investigation, which have led to charges.