[taxabletalk] Russ: Sweet for Me, But Not for You

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Posted by Russ:
Sweet for Me, But Not for You
http://www.taxabletalk.com/posts/1242304954.shtml


   With a name like Sweeties you can probably guess what the business was
   in. If the government is correct, your first instinct would be right.
   [1]The Department of Justice is accusing Douglas Ketcher and Christina
   Wypych of Oakland Park, Florida of running a prostitution ring. That
   in itself is illegal. But not only did they allegedly violate those
   laws, the 58-count indictment also alleges that the owners did not pay
   their staff their full wages and, more importantly, didn't remit their
   trust fund taxes to the IRS.
   As I've said repeatedly, a sure-fire way of getting in trouble with
   the government is to not remit trust fund taxes or somehow get the
   accounting of those taxes wrong. The IRS investigates nearly 100% of
   these cases, and if you're underlying business is shady the last thing
   you want is to have government investigators knocking on your door.
   The indictment of Mr. Ketcher and Ms. Wypych alleges that their
   business, Sweeties, charged $300 an hour for customers to be
   "entertained" by their employees. Had they remitted their trust fund
   taxes they'd likely not be facing money laundering, tax fraud, and
   prostitution charges.

References

   1. http://www.sun-sentinel.com/community/news/oakland_park/escort-service-indictment-b0513,0,7687503.story