Date: February 12, 2020
David E. Doll of Bennington, Nebraska, was sentenced in Lincoln, Nebraska, by Senior United States District Judge Richard G. Kopf for failure to pay over withholding taxes. Doll was sentenced to 5 years' probation and was ordered to pay $279,609.77 in restitution.
"Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS," said IRS Criminal Investigation Special Agent in Charge Karl Stiften. "When employers fail to do so, it affects revenue to the United States government, but more importantly, it could affect their employees' Medicare and Social Security benefits."
During 2012 and 2013, David E. Doll operated and owned Double D Excavating (DDE) and Load Rite Excavating (LRE), which operated in Omaha and Bennington, Nebraska. Doll was responsible for authorizing business expenses, authorizing payment of employee paychecks, signing of employee paychecks, approval of payments made by the corporation, and approval of payment of "payroll taxes" to the Internal Revenue Service.
During 2012 and 2013, Doll's businesses withheld federal income taxes, and Medicare and Social Security taxes, commonly referred to as "payroll taxes," from his employees' paychecks. Doll was then required to make deposits of those "payroll taxes" to the IRS on a periodic basis. Doll was also required to file a Form 941, "Employer's Quarterly Federal Income Tax Return" for those businesses at the end of each calendar quarter. When filed correctly, the Form 941 sets forth the total amount of wages and other compensation subject to withholding, the total amount of income taxes withheld, the total amount of "payroll taxes" due, and the total tax deposits. Doll did not make those filings with the IRS and also did not pay those withheld "payroll taxes" to the IRS on behalf of his employees.
This case was investigated by the Internal Revenue Service.