Owner of Mayfield Heights company charged with failing to pay over $420,000 in taxes he withheld from employees

The owner of a Mayfield Heights company was charged with failing to pay over more than $420,000 in taxes he withheld from his employees, said U.S. Attorney Justin E. Herdman and IRS Special Agent in Charge Ryan L. Korner.

Daniel Day, 59, was charged via criminal information with 17 counts of failure to pay over taxes.

Day was the sole owner and operated or Academy Answering Service, a telephone messaging service provider. Day retained a payroll company, which prepared and provided payroll checks for Day to give to his employees. The company withheld the proper amount of taxes from each employee and prepared documents for Day to make AAS’ quarterly employment tax payments to the IRS, according to the information.

In 2008, Day directed the payroll company to discontinue making quarterly employment tax problems to the IRS due to “cash flow problems.” Day then failed to make payments of AAS employee taxes between 2008 and 2013, according to the information.

Day collected but did not pay over approximately $420,286 in employee taxes, according to the informnation.

This case was investigated by the IRS – Criminal Investigations and is being prosecuted by Assistant U.S. Attorney Robert J. Patton.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

An charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.