Federal Court Permanently Enjoins Eastern Washington Dental Care Provider and Its Owners from Accruing Payroll Tax Liabilities

A federal court in Spokane, Washington has ordered that James Hood, a dentist, and Karen Hood, his wife, ensure that their businesses timely file payroll tax returns and pay payroll taxes, the Department of Justice announced today.

U.S. District Court Judge Rosanna Malouf Peterson for the Eastern District of Washington entered a permanent injunction requiring Dental Care Associates of Spokane Valley, P.S.; Dr. James G. Hood Family Dentistry, aka Spokane Valley Dental Care, aka James G. Hood Family Dentistry, P.S.; Dr. James G. Hood, D.D.S., M.A., P.S., aka James G. Hood D.D.S., P.S., aka James G. Hood D.D.S., M.A., P.S.; Dr. James G. Hood, D.D.S., P.S.; Karen Jean Matsko Hood as Trustee of the Hood Family Trust; Whispering Pine Press, Inc.; James G. Hood and Karen J. Hood, to timely file payroll tax returns and pay any payroll taxes that accrue. Additionally, James and Karen Hood must notify the Internal Revenue Service (IRS) if they start to operate a new business.

According to the United States’ amended civil complaint, the various entities have repeatedly failed to timely file payroll tax returns or pay payroll taxes.  Moreover, James and Karen Hood have frustrated payroll tax enforcement by continually abandoning old entities and creating new ones.  The district court held that James and Karen Hood had admitted the facts in the complaint by failing to file an answer after the court ordered them to do so.  The permanent injunction entered by the court requires the defendants to stay current on their federal employment tax obligations.

Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked the revenue officer of IRS Field Collection for investigating and preparing the civil case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.