SERGEANT BLUFF, Iowa (KCAU) — The owner of a Sergeant Bluff construction firm was sentenced for tax evasion on Friday.
According to a release from the U.S. Attorney’s Office, Kevin Alexander, 62, of Sioux City, was sentenced to two years in federal prison for his role in tax evading. This includes evading payment of the company’s employee taxes, his personal income tax, and employment taxes that were kept in someone else’s name.
The release stated that Alexander owned K&L Consturction Inc., a company that did landscaping and construction.
The release said that since Alexander was the sole shareholder and president of the company, he was responsible for filing the company’s quarterly employment tax returns and collecting and paying to the IRS payroll taxes that were withheld from wages. The release said that from the second quarter of 2014 through the first quarter of 2017, more than $3.8 million was paid to employees and approximately $1 million was withheld, but none of it was ever paid to the IRS.
The release said that during collection proceedings, Alexander submitted a false form to the IRS that hid some of his assets. He told officials that he submitted the false form to conceal his assets and evade making payments.
The release also said that he evaded paying the debt by operating it through a different company called Circle A Construction, Inc. Circle A Construction’s owner was kept under a different person’s name. He was found liable for $767,314.74 in tax liability for Circle A Construction.
He also evaded paying his personal income taxes for 2014, 2015, and 2016, the release said. He evaded paying $667,544 in personal income tax.
“Mr. Alexander admitted that he purposely hid his assets to avoid paying his company’s outstanding payroll tax liability,” said Acting Special Agent in Charge Thomas F. Murdock, IRS Criminal Investigation’s St. Louis Field Office. “Employers cheat their employees when they fail to meet that obligation. That’s a serious offense that harms the employee and all the honest taxpayers who’ve paid their fair share of taxes in a timely manner.”
Alexander was sentenced to 24 months imprisonment and has to pay $1,678,722.39 in restitution. He has to serve a two-year supervised release after he is out of prison.