Federal Court Permanently Enjoins California Business from Accruing Payroll Tax Liabilities
A federal court has ordered a San Diego, California provider of collection services to pay its payroll taxes as they become due, the Justice Department announced today. Judge Larry Alan Burns of the U.S. District Court for the Southern District of California entered a permanent injunction requiring Prolien Services LLC and its owner, Albert F. Quintrall, to pay Prolien’s federal payroll tax liabilities as they become due and owing.
The defendants agreed to entry of the injunction and admitted the allegations in the government’s complaint. Prolien has repeatedly failed to make sufficient federal employment tax deposits since 2009 and has amassed substantial employment tax liabilities.
Under the terms of the injunction, the business must deposit its payroll taxes and file its employment tax returns on a timely basis. The defendants are also required to notify the Internal Revenue Service (IRS) that the required tax deposits have been made and tell the IRS if they begin operating any new business. The defendants are precluded from assigning property or making any payments to other creditors until the employment tax liabilities are paid. The injunction is effective immediately.
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 and the attorneys who handled the litigation.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.