CEDAR RAPIDS, Iowa – A Forest City businessman has been given 13 months in federal prison for not paying employment taxes.
60-year-old Darrell Smith pleaded guilty to not paying over $500,000 in taxes on behalf of employees at Permeate Refining, an ethanol-production company in Hopkinton.
“Mr. Smith’s failure to pay employment taxes for over a year was an attempt to dodge his obligations to his employees and to the United States,” said U.S. Attorney Kevin W. Techau. “Our system and our citizens depend upon employers like Mr. Smith to be honest and pay what they owe in employment taxes. This sentence shows that failing to do so is criminal and there will be consequences.”
After his prison term, Smith will have to serve two years of supervised release.
A co-defendant in this matter, Randy Less, has already pleaded guilty to failing to pay employment taxes and violating the Clean Water Act. He will be sentenced on March 23, 2017.