FOR IMMEDIATE RELEASE|
THURSDAY, APRIL 28, 2004
TDD (202) 514-1888
COURT ORDERS HONOLULU EMPLOYERS TO COMPLY WITH FEDERAL TAX WITHHOLDING AND PAYMENT REQUIREMENTS
WASHINGTON, D.C. - The Justice Department announced today that a federal court in Honolulu, Hawaii, issued a preliminary injunction ordering Frederic Zimmer and his company, Artforms, Inc., to comply with federal employment tax withholding and payment requirements. The court order also prevents Zimmer or Artforms from transferring any assets that would prevent compliance with the Internal Revenue Code.
The Justice Department filed suit on February 25, 2004, seeking to enjoin the defendants from interfering with the administration of the internal revenue laws. The complaint alleges that the defendants, who operate a business manufacturing ornamental metal-work gates and doors, have failed to comply fully with their employment tax obligations since 1998. The United States later moved for a preliminary injunction. Zimmer and Artforms did not oppose entry of the injunction.
The April 23 order enjoined Zimmer and Artforms from:
“All employers must comply with federal employment tax laws,” said Eileen J. O'Connor, Assistant Attorney General for the Justice Department's Tax Division. “Failing to withhold and pay federal taxes exposes an employer not only to a federal injunction, but also to significant civil penalties and, in some cases, criminal prosecution.”
The order remains in effect until a hearing on the permanent injunction is held.