[US] Prison sentence for PEO owner after $22m employment tax scheme

On January 8 in the US, an Oregon payroll services company owner was sentenced to 27 months in prison for willfully failing to pay employment taxes owed to the IRS, Justice.gov reports.

According to court documents and statements, Robert Kohnle, of Lake Oswego, Oregon, was the president, secretary and CEO of Real Benefits Group Inc. operating as Aliat. Aliat was a professional employer organisation (PEO) that provided payroll and payroll-related services for its clients. 

Under service agreements with its clients, Aliat was reportedly responsible for receiving and paying to the IRS the payroll taxes withheld from wages the client businesses paid their employees, including federal income, Social Security and Medicare taxes.

From the fourth quarter of 2016 until the fourth quarter of 2022, Mr Kohnle received funds from Aliat’s clients that represented payroll tax withholdings but kept the money rather than pay the IRS, as required by law. 

Mr Kohnle reportedly used the money to pay Aliat’s other expenses and creditors, including himself, causing a tax loss to the IRS of more than $22.6 million.

In addition to the term of imprisonment, U.S. District Judge Karin J. Immergut for the District of Oregon reportedly ordered Mr Kohnle to serve three years of supervised release and to pay $14,092,693.42 in restitution to the United States.

Source: Justice.gov

On January 8 in the US, an Oregon payroll services company owner was sentenced to 27 months in prison for willfully failing to pay employment taxes owed to the IRS, Justice.gov reports.

According to court documents and statements, Robert Kohnle, of Lake Oswego, Oregon, was the president, secretary and CEO of Real Benefits Group Inc. operating as Aliat. Aliat was a professional employer organisation (PEO) that provided payroll and payroll-related services for its clients. 

Under service agreements with its clients, Aliat was reportedly responsible for receiving and paying to the IRS the payroll taxes withheld from wages the client businesses paid their employees, including federal income, Social Security and Medicare taxes.

From the fourth quarter of 2016 until the fourth quarter of 2022, Mr Kohnle received funds from Aliat’s clients that represented payroll tax withholdings but kept the money rather than pay the IRS, as required by law. 

Mr Kohnle reportedly used the money to pay Aliat’s other expenses and creditors, including himself, causing a tax loss to the IRS of more than $22.6 million.

In addition to the term of imprisonment, U.S. District Judge Karin J. Immergut for the District of Oregon reportedly ordered Mr Kohnle to serve three years of supervised release and to pay $14,092,693.42 in restitution to the United States.

Source: Justice.gov