Beaverton man sentenced to federal prison, failed to pay IRS
A Beaverton man is headed to federal prison for willfully failing to collect or pay over employment taxes to the IRS.
According to the U.S. Attorney's Office of the District of Oregon, 49-year-old Jeffrey Fitch was sentenced on Tuesday, Sept. 9, to one year and one day in federal prison.
Fitch was also ordered to pay more than $453,000 in restitution to the IRS.
Since 2002, Fitch, an engineer, owned and operated SFA Engineering LLC and SFA Design Group LLC, according to court documents.
"Between March 1, 2013, and December 31, 2016, Fitch collected federal income, social security, and Medicare taxes from his employees' paychecks and gave them paystubs reflecting the taxes withheld," the U.S. Attorney's Office said in a statement. "However, during this time period, Fitch never paid the IRS the amount of tax withheld from his employees nor did he file the appropriate employer tax returns."
Federal prosecutors added that Fitch also failed to pay his employer's share of payroll taxes due to the IRS.
"Fitch used a large portion of the withheld funds to pay for his and his family's personal expenses," the U.S. Attorney's Office said.
In total, Fitch owed the IRS $453,879.40, which he paid just prior to sentencing.
On Jan. 15, Fitch was charged with one criminal count of failing to collect or pay over employment taxes. In late February, he pleaded guilty to the same charge.
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