(WFRV) – The owner of Johnson Sausage Shop in central Wisconsin was sentenced to a year in prison after pleading guilty to not paying the IRS.
According to the Department of Justice, 57-year-old Christa Johnson was sentenced to prison for not paying tax withholding to the IRS. Back in June, a federal grand jury returned a 17-count indictment against Johnson.
She was charged with seven counts of withholding income taxes and payroll taxes from her employees and not paying the taxes over to the IRS, nine counts of not paying the employer’s share of employment taxes and one count of obstruction of IRS collection efforts.
Johnson reportedly owned Johnson Sausage Shoppe, Inc. which is a meat processing plant, grocery store and catering business in Rio. It opened up in 1996. She was the President of the business and responsible for all parts of the business operations.
This included accounting, finance, banking, payroll, hiring and firing of employees, paying bills, paying taxes, and filing forms with the IRS.
She was accused of failing to timely file quarterly employment tax returns for the business and pay the employment taxes. From the first quarter of 2013 through the fourth quarter of 2016. During that period, the business paid $1,496,524.69 in wages and withheld from those wages FICA taxes and the employee’s income taxes. This totaled $211,337.32, which was not paid over to the IRS.
Johnson also reportedly failed to pay to the IRS the employer’s matching share of FICA taxes, which amounted to $111.137.86. Additionally, federal unemployment taxes were also not paid, which totaled $4,430.54.
All in all, Johnson Sausage Shoppe owed $326,905 in unpaid taxes to the IRS. Johnson pleaded guilty to one count of not paying over the employee tax withholdings but reportedly agreed the total tax loss of the scheme amounted to $326,905.
U.S. District Judge James Peterson said reportedly noted that multiple people gave Johnson repeated warnings that she was in violation of the law, but she ignored the warnings and chose to defy her tax obligations from 2013 through 2016.
Johnson was sentenced to serve one year in prison and pay a $25,000 fine. She was also ordered to pay $326,905 in restitution to the IRS, which she reportedly paid right away.
An investigation done by the IRS Criminal Investigation resulted in the charges against Johnson. No additional information was provided.