Ace R. Jones II, of Somerset, has waived a formal five-count “federal information” charge accusing him of failing to report and pay after withholding Federal Insurance Contribution Act (FICA) taxes. ) between 2017 and 2019. Jones owned and operated a business as Cumberland Behavior Group, LLC (CBG).
As alleged in the reports, CBG withheld taxes from the paychecks of some 50 employees – including federal income taxes, Medicare and Social Security taxes – in the amount of $ 259,648.88.
“Employers have a responsibility to their employees to withhold the appropriate amount of taxes and pay those taxes to the IRS,” said Bryant Jackson, special agent in charge of the Internal Revenue Service’s field office of criminal investigations. in Cincinnati, in a press release. “When employers don’t, it affects the revenue of the United States government, but more importantly, it affects the health and social security benefits of their employees.”
The charge against Jones carries a sentence of up to five years in prison. However, according to the plea agreement filed, Jones agreed to pay a total of $ 301,415.15 in restitution as follows: $ 259,648.88 owed to the IRS and $ 41,766.21 to 11 “employees or former employees. employees of Cumberland Behavior Group, LLC, who incurred out-of-pocket expenses related to various forms of health services that were not covered by the insurance offered by CBG to its employees. “
While the forfeiture of insurance is not directly related to the tax issue, according to the plea deal, Jones’ agreement to pay those fees has prevented prosecutors from laying additional charges in the region.
A sentencing hearing has yet to be set in the Jones case.
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