FORT SMITH BUSINESSMAN SENTENCED TO 30 MONTHS FOR FAILING TO PAY FEDERAL INCOME TAXES
FOR IMMEDIATE RELEASE
July 1, 2013
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, and Glen Perciful, Supervisory Special Agent for IRS-Criminal Investigation, announced today that George Avlos, 45, of Fort Smith, Arkansas, was sentenced to 30 months in prison for failing to pay over employment taxes and 12 months in prison for failing to file federal income tax returns. The sentences will be served concurrently and followed by three years supervised release. The Honorable P.K. Holmes III, Chief U.S. District Court Judge for the Western District of Arkansas, handed down the sentences in Fort Smith. Judge Holmes also ordered Avlos to pay $291,760.41 in restitution to the Internal Revenue Service.
According to court records, Avlos was the sole owner and president of LinLex Inc., a company that provided consulting services concerning Department of Transportation regulations. As president of the company, Avlos was responsible for collecting, truthfully accounting for, and paying over LinLex’s payroll taxes. During 2007 and 2008, LinLex withheld payroll taxes from its employees’ paychecks but failed to make all necessary payroll-tax payments to the Internal Revenue Service. Beginning in March 2007 through September 2008, LinLex further failed to file quarterly employment tax returns (Forms 941) on a timely basis with the Internal Revenue Service. Each Form 941 was due to be filed at the end of the month following the end of each calendar quarter. In the seven calendar quarters, LinLex failed to account for and pay over a total of approximately $109,543.40 in payroll taxes. In addition, Avlos failed to file a personal income tax return for 2006, a year in which he had an income of approximately $199,489.
Avlos pleaded guilty to a two-count information on February 27, 2013.
The case was investigated by Special Agent David Kimbrough of IRS-Criminal Investigation. Assistant United States Attorney David R. Ferguson prosecuted the case for the United States.
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