Kate E. Brubacher, U.S. Attorney | U.S. Attorney for the District of Kansas
A Kansas business owner has been sentenced to 17 months in prison for failing to remit over one million dollars in employment tax collections to the Internal Revenue Service (IRS). Marvin Vail, aged 53 and a resident of Gardner, pleaded guilty to one count of failure to account for and pay over employment taxes.
Vail operated Marvin's Tow Service, Inc. in Gardner, Kansas. According to court documents, he did not pay employment taxes for at least 23 calendar quarters between 2012 and 2017. Employers are required by law to withhold Federal Insurance Contribution Act (FICA) taxes and income taxes from employee wages and forward these amounts to the IRS. During an investigation by IRS-Criminal Investigation agents, it was revealed that Vail had instructed his office administrator not to pay the federal taxes owed.
In addition to his prison sentence, a federal judge has ordered Vail to pay $1,512,283 in restitution to the IRS.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Scott Rask.
