Willard Douglas Kerr of Phoenix operated DK Coatings, LLC, a painting and wall covering company in Manassas, Virginia. Mr. Kerr had many employees, and the business was apparently successful.
Mr. Kerr also had some pressing needs at home. He needed a new car. His swimming pool needed repairs. He also wanted to put more money into his business. So he did what you should never, ever do: He didn’t remit his federal trust fund taxes.
As I’ve said over and over, if you have employees and don’t remit your trust fund taxes, the IRS will come after you. It’s only a question of when, not if. If you’re an employer make sure you sign up for EFTPS and check to make sure that your trust fund taxes are being remitted; you will be held responsible if they’re not. That’s why you absolutely positively need to use a reputable payroll company. But I digress….
In any case, Mr. Kerr’s actions were discovered. In April he pled guilty to tax fraud; on Friday he was sentenced to 24 months at ClubFed. He must also make restitution of the $1,111,352 in taxes he owes to the IRS. Now he’ll get to watch the paint he sold dry.