An Aurora man has been sentenced to three years probation, including six months of house arrest, and fined $25,000 for failing to pay employment taxes owed by his corporation to the IRS.
Dennis J. Courtad, 61, recently was sentenced by Chief United States District Judge Solomon Oliver Jr., according to Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Courtad pleaded guilty to a one-count bill of information charging that he, as sole owner and president of Twinsburg-based Courtad Inc., failed to pay about $289,291.69 in income taxes and Federal Insurance Contributions Act taxes withheld from wages paid to the corporation's employees during the third quarter of 2007 through the fourth quarter of 2010.
Such taxes also are referred to as the "employees' share" of employment taxes.
In addition to those unpaid taxes, the plea agreement detailed Courtad's failure to pay the employees' share for the preceding quarters dating back to June 2005 and for failing to pay the employer's share of FICA taxes for the entire period from June 2005 through December 2010.
In total, Courtad's unpaid employment taxes, as of the start of the criminal investigation by agents of the IRS in Cleveland, were about $583,489.
As a condition of probation, Courtad will have to cooperate to determine and pay the total amount due to the IRS, including interest and additional civil penalties.
Courtad told the court that he had already paid a substantial portion of these taxes, according to Dettelbach.