Former Payroll Service Provider Sentenced For Tax Evasion
MINNEAPOLIS—Yesterday in federal court, a former payroll service provider was sentenced for failing to pay to the Internal Revenue Service (“IRS”) employment taxes received from his clients. On April 4, 2013, United States District Court Judge John R. Tunheim sentenced Mohamed Abdi to time served (approximately three months) on one count of tax evasion. He also was ordered to pay approximately $77,000 in restitution. Abdi was indicted on April 9, 2012, and pleaded guilty on January 3, 2013.
From January 1, 2005, through June 2007, Abdi was the sole owner of Siham Solutions, Inc., which provided payroll services to clients in Minnesota. These services included paying federal income and employment taxes that were withheld from the employees of Siham’s clients. In his plea agreement, Abdi acknowledged that from the first quarter of 2005 through the second quarter of 2007, he received between $80,000 and $200,000 in employment taxes from his clients, which he, in turn, was to pay to the IRS. Instead, however, Abdi used the money for his own purposes.
This case was the result of an investigation by the IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Michael L. Cheever.
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.