FOR IMMEDIATE RELEASE TUESDAY, JULY 27, 2004 WWW.USDOJ.GOV TAX (202) 514-2007 TDD (202) 514-1888 WASHINGTON, D.C. - The Justice Department announced today that a federal court in Portland, Oregon has ordered Emily Cedarleaf and the Multi Family Housing Council of Oregon (MFHCO), both of Salem, to comply with federal employment tax withholding and payment requirements. The order, entered on July 26, also bars Cedarleaf or MFHCO from transferring any assets that would prevent compliance with the Internal Revenue Code and provides that if future compliance is not met, then the government may seize and sell MFHCOs property to ensure compliance and prevent further pyramiding of MFHCOs tax liabilities.
The Justice Department filed suit on June 10, 2004, seeking to enjoin the defendants from interfering with the administration of the internal revenue laws. The complaint alleges that the defendants have failed to fully pay MFHCOs employment tax obligations since 1999. According to the complaint, Cedarleaf owns MFHCO, a service business that provides forms and training classes throughout Oregon to property management firms and rental property owners. Cedarleaf consented to the entry of the order on her own behalf and on behalf of MFHCO.
The courts order applies to taxes due both under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). The court also ordered the defendants to mail to the IRS on a monthly basis an affidavit that states that all required taxes due for the prior month have been fully deposited.
All employers must comply with federal employment tax laws, stated Eileen J. OConnor, Assistant Attorney General for the Tax Division. When employers violate employment tax laws, they harm not only their employees, but the public as a whole. Information about the Tax Division is available at
Source: US Department of Justice
