Baltimore, Maryland – Chief U.S. District Decide James K. Bredar sentenced Harshe Shende, age 57, of Hanover, Maryland, to 15 months in federal prison, followed by two decades of supervised release, for willful failure to pay out around employment taxes. Main Decide Bredar also discovered that Shende failed to shell out to the IRS a total of $1,690,000 in federal work and employer taxes and requested Shende to spend restitution in that volume to the IRS. Chief Choose Bredar imposed the sentence late on July 23, 2021.
The sentence was declared by Acting United States Legal professional for the District of Maryland Jonathan F. Lenzner and Performing Specific Agent in Demand Darrell J. Waldon of the Internal Revenue Company – Prison Investigation, Washington, D.C. Discipline Business.
In accordance to his guilty plea, Shende was the sole operator and resident agent of Progressive Rehab Providers, LLC, which utilized bodily and occupational therapists who went to nursing homes to render companies to sufferers. Shende was the sole signatory on two financial institution accounts he opened for the corporation at independent financial institutions in 2008 and 2013, respectively. Shende accrued huge liabilities for Progressive Rehab by submitting kinds with the IRS which confirmed the quantity of income tax withholding he collected from Progressive Rehab’s staff and their Medicare and Social Stability withholding (collectively work taxes) but by failing to pay the work taxes to IRS. Shende also unsuccessful to shell out the employers’ part of work taxes to the IRS. The IRS pursued selection functions against Progressive Rehab.
As comprehensive in his plea settlement, on March 16, 2006, Shende and his then spouse incorporated Progressive Health Team, Inc., (“Progressive Health”) in Maryland, with the said reason to offer rehab to nursing households, hospitals, assistive residing and dwelling wellbeing. Shende was mentioned as Govt Director on two bank accounts he opened for the corporation at independent banking companies in 2008 and 2012, respectively. Shende listed the exact deal with in Columbia, Maryland, for Progressive Health and fitness as he did for Progressive Rehab.
Shende admitted that he triggered Progressive Rehab’s workforce to carry out the identical function but billed for their get the job done making use of the identify Progressive Wellness and paid out their salaries employing Progressive Health’s bank account. Progressive Well being withheld payroll taxes from its employees’ paychecks, like federal revenue taxes, Medicare and social protection (“FICA”) taxes. As he did with Progressive Rehab, Shende submitted forms with the IRS for Progressive Wellbeing exhibiting the amount of money of work taxes withheld. Even so, as he did with Progressive Rehab, Shende willfully selected not to pay out the taxes withheld from Progressive Health’s employees’ wages to the IRS, nor did he pay back the employer’s part of the employment taxes.
As a end result, Shende failed to spend to the IRS a whole of $155,838.15 in work taxes withheld in tax a long time 2014 and 2015 and unsuccessful to shell out the IRS a full of $103,066.85, which was the employer’s share of work taxes for tax years 2014 and 2015.
Acting United States Attorney Jonathan F. Lenzner recommended the IRS-CI for its operate in the investigation. Mr. Lenzner thanked Assistant U.S. Legal professional Joyce K. McDonald, who prosecuted the scenario.
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