Luther A. Hanson, a 72-year-old resident of Charleston, West Virginia, was sentenced to three years of federal probation for failing to pay over taxes. The sentence includes eight months of home detention and a $5,000 fine. Previously, the court determined that Hanson owed $146,771.37 to the United States Department of the Treasury due to his criminal actions. Hanson settled this amount before sentencing.
From at least 2015 until September 2020, Hanson did not withhold or remit approximately $149,905.38 in employment taxes for two employees at his businesses: The Estate Planning Group Inc. and L.A. Hanson Accounting Services. Both employees provided accounting services for these companies.
Hanson admitted in court that he had agreed with the employees before June 30, 2015, to classify them as independent contractors. He acknowledged understanding that this arrangement would relieve him from paying employer-related taxes and withholding employee contributions.
Despite continuing to pay gross wages by check without altering job duties or responsibilities, Hanson knew the employees were not independent contractors and failed to pay required trust fund taxes and the employer’s share of employment taxes quarterly during this period.
One employee paid part of their tax obligations, which adjusted Hanson's restitution amount.
The announcement was made by Acting United States Attorney Lisa G. Johnston, who praised the investigative efforts of IRS-Criminal Investigations (IRS-CI) and the FBI.
Senior United States District Judge John T. Copenhaver Jr. issued the sentence while Assistant United States Attorney Erik S. Goes handled prosecution.
Further details are available on the U.S. Attorney’s Office website for the Southern District of West Virginia and through PACER under Case No. 2:24-cr-119.
