Wednesday, March 21, 2012

Supreme Court Denies Review of Employment Tax Case

The Supreme Court denied review March 19 of an Eighth Circuit case where a Minnesota man was convicted of failing to account for and pay employment taxes, sentenced to four years in prison, and fined $75,000 (McLain v. United States, U.S., No. 11-937, 3/19/12).

The U.S. Court of Appeals for the Eighth Circuit affirmed a U.S. District Court for the District of Minnesota judgment that convicted and sentenced Francis Leroy McLain, who managed a temporary staffing agency for nurses that failed to file either a Form 941, Employer's Quarterly Federal Tax Returns, or pay employment taxes between 2002 and 2005.

At trial, McLain asserted that the staffing agency, Kirpal Nurses, was not required to account for or pay employment taxes because the nurses were independent contractors.

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