FORMER FORT SMITH BUSINESSMAN SENTENCED TO 30 MONTHS FOR FAILING TO PAY FEDERAL INCOME TAXES
FOR IMMEDIATE RELEASE
August 1, 2013
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, and Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation, announced today that Dennis H. Nooner, Jr., 52, formerly of Northwest Arkansas, was sentenced to 30 months in federal prison for failing to pay over tax. Nooner was also sentenced to three years of supervised release, and a $50,000 fine. The Honorable Jimm Larry Hendren, U.S. District Court Judge for the Western District of Arkansas, also ordered Nooner to pay $407,354.51 in restitution to the Internal Revenue Service.
United States Attorney Eldridge commented, “This man stole from his own employees to cheat the IRS. Our office will remain vigilant in prosecuting similar individuals and helping to ensure that no one takes advantage of the tax system for personal gain.”
Special Agent Henry stated “Employment Tax violations are detrimental not only due to the loss of U.S. tax revenue, but also the loss of future Social Security or Medicare benefits for the employees. This sentence sends a clear message that there are harsh consequences for those who intentionally evade their tax obligations and take advantage of their own employees for personal benefit.”
According to court records, from 2007 through 2011, Nooner served as co-owner and the managing member of two assisted living facilities located in Mississippi. The business office for these facilities was located in Northwest Arkansas. As a managing member, Nooner had the duty and corporate responsibility to collect, truthfully account for, and pay over the assisted living facilities’ payroll taxes. The funds were withheld from employees’ paychecks, and Nooner caused the assisted living facilities to make thousands of dollars of expenditures for his personal benefit rather than paying the income tax over to the IRS as required. Nooner did not pay over a total of $407,354.51 in employment taxes that had been withheld from the employees’ paychecks.
On December 5, 2012, Nooner pleaded guilty to two counts of a 22-count indictment charging him with failing to pay over tax.
The case was investigated by IRS-Criminal Investigation. First Assistant United States Attorney Wendy L. Johnson and Assistant United States Attorney Glen Hines prosecuted the case for the United States.
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