On January 13, the Department of Justice announced that Timothy Agnew, the owner of Red Hill Construction (RHC) in Hillsville, Virginia, pleaded guilty to filing tax returns that did not fully report income earned through his construction company.
According to court documents, RHC performed construction services such as roof repairs, home remodeling, and building home additions. Between 2017 and 2021, Agnew filed personal tax returns that e government claims omitted over $2,000,000 in gross receipts. These amounts were related to projects where customers did not issue IRS Form 1099 to report payments. As a result, the IRS alleges a tax loss of more than $375,000.
Agnew is scheduled for sentencing on April 3, facing faces a maximum potential penalty of three years in prison, along with the possibility of supervised release, restitution, and monetary penalties. A federal district court judge will determine his sentence.
Payroll tax compliance can present challenges for many businesses. Mistakes in this area, even if unintentional, can lead to investigations and legal consequences. For companies navigating these challenges, seeking legal counsel is essential. Experienced attorneys can help businesses assess their compliance practices, address any potential issues before they escalate, and defend against government investigations.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with white-collar crime matters, government investigations, and tax-related cases. If you need assistance with such a matter, please contact us today.
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