March 9, 2017

A federal court in Spokane, Washington found Dr. James Hood, a dentist, and his wife, Karen Hood, in contempt for violating the Court’s previous permanent injunction requiring them to timely file payroll tax returns and pay payroll taxes, announced the Justice Department’s Tax Division. The Court ordered the Hoods to close their dental care businesses, cease operating as employers, and barred them from opening any new businesses where the Hoods would serve as employers. On March 8, U.S. District Court Judge Rosanna Malouf Peterson for the Eastern District of Washington found James Hood and Karen Hood in contempt after they demonstrated a consistent pattern of disregarding their tax obligations by making incomplete employment tax payments, making dishonored payments, and missing deadlines. The Court had previously entered a permanent injunction requiring James and Karen Hood, and their entities, to comply with the federal employment tax laws. According to the United States’ supplemental filing in the case, the Hoods had failed to show full compliance with the tax laws and the Court’s injunction by Jan. 31, as the Court had ordered. The court found that, the Hoods had failed to pay their taxes for the Fourth Quarter 2016 by the end of January 2017. The court also found that the Hoods had attempted to make payroll tax payments that were dishonored due to insufficient funds in their accounts. DOJ

Tagged in: Employment Tax Fraud, Tax Fraud,