Owner Of Food Product And Supply Business Sentenced For Failing To Pay More Than $200,000 In Employment Taxes
United States Attorney Andrew M. Luger today announced the sentencing of PEGGY EISCHENS, 45, to one year and one day in federal prison for failing to pay more than $200,000 in employment taxes. EISCHENS pleaded guilty on October 14, 2014, to one count of Willful Failure to Pay Over Taxes. She was sentenced on February 4, 2015, before Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, from 2002 through 2011, EISCHENS was a co-owner and employee of R.D. Hanson Associates, Inc. (“RDHA”), which conducted business under the names Kernel Pops of Minnesota and Kernel Concession Supply. During her employment, EISCHENS was responsible for handling payroll and accounting for RDHA, which included the preparation of employee paychecks and the preparation and filing of Form 941 quarterly tax returns with the IRS.
According to her guilty plea and documents filed in court, from 2003 through December 2011, EISCHENS willfully failed to pay over to the IRS federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, meaning Social Security and Medicare taxes, deducted and collected from the wages of RDHA employees. In total, EISCHENS failed to pay over approximately $201,285 of withheld federal income taxes, withheld FICA taxes, and the employer’s share of FICA taxes.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigations.
Assistant U.S. Attorney Joseph H. Thompson prosecuted the case.
PEGGY EISCHENS, 45
• Willful Failure to Pay Over Taxes, 1 count
• 1 year and 1 day in prison
• 3 years supervised release