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Government Actions
Business owner sentenced on tax charge
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Julie Dotton, 51, of Orchard Park, NY, who was convicted of willful failure to truthfully account for and pay over employment taxes, was sentenced four years’ probation, and ordered to perform 100 hours of community service by U.S. District Judge John L. Sinatra, Jr. Dotton was also ordered to pay restitution of $1,585,538 to the IRS and $117,277 to the SBA.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Dotton was the President, CEO, and majority shareholder of Applied Sciences Group (ASG), a technology business that largely developed software. She was also the founding partner of the partnership KRP Holdings (KRP). By law, businesses must account for income tax, social security tax, and a hospital insurance (Medicare) tax in the wages of individual employees, equal to a percentage of the wages earned by the employee. These taxes are commonly referred to as “trust fund taxes” because employers hold these taxes in trust for the government. For all of 2018 and three quarters of 2019, Dotton failed to pay over the trust fund taxes to the IRS on behalf of the employees of ASG and KRP, resulting in a loss of approximately $1,100,837 to IRS. Dotton also admitted that she obtained a Paycheck Protection Program (PPP) loan from the federal government in the amount of $117,277, to which she was not entitled.
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