Minnesota Woman Sentenced For Failing To Pay Employment Taxes Withheld From Employee Paychecks
MINNEAPOLIS—Earlier today in federal court in St. Paul, a Minnesota woman was sentenced for failing to pay to the Internal Revenue Service (“IRS”) more than $150,000 in payroll taxes withheld from the paychecks of her employees. United States District Court Judge Donovan W. Frank sentenced Doris Ruiz to 12 months and one day in prison on one count of failure to pay over federal employment taxes. Ruiz was indicted on October 4, 2011, and pleaded guilty on January 17, 2012.
Between 2005 and 2007, Ruiz, the owner of Olen Staff Company, a temporary work agency in Minneapolis, deducted and collected federal employment taxes, including certain federal income taxes, such as Federal Insurance Contribution Act (“FICA”) taxes, from her employees’ pay. Under law, she was required to pay those withholdings to the IRS. However, Ruiz failed to do so and, instead, used more than $150,292.00 in employee withholdings for her own personal benefit.
This case was the result of an investigation by the IRS-Criminal Investigation Division. It was prosecuted by Assistant U.S. Attorney Ann M. Anaya.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.