Strip club owner collected workers' taxes, but didn't pay IRS, feds say

avatar for Ermita_Nights
Ermita_Nights
Michigan
I am shocked to learn that the former owner of the Coliseum in Detroit failed to pay taxes on the sale of the business.

Seriously, it seems odd that he also failed to pay the IRS what he withheld from his employees' paychecks for a full eight years. If I fail to pay my taxes, IRS comes after me right away. They don't wait eight years.

https://www.mlive.com/news/ann-arbor/ind…

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avatar for knight_errant
knight_errant
6 years ago
This happened in upstate NY. Owner claimed dances were artistic performance and thus tax exempt (didn't pay taxes on the cover either https://www.tuscl.net/discussion.php?id=…) Lost case, jacked up cover and dance prices.
avatar for jackslash
jackslash
6 years ago
I once knew a man who did not remit the SS taxes he withheld from his employees' paychecks. He got off without prison time, but the IRS kept on him for the rest of his life. He could not own a home or anything else of value until he paid off his debt.
avatar for MrBater2010
MrBater2010
6 years ago
Seen something like this happen.

Employee (CFO) at the employer told employee, "I gave you a raise don't tell anyone." Employee filed taxes and ended up on a lot of $$$ to the IRS. No raise she was reducing her with holding. Owner finds out and figures out CFO is on the take. She goes to jail and the IRS doesn't give a shit they want their money still and they wanted it yesterday.
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