Thread: NJ-Contractor charged with failing to pay employee taxes

Contractor charged with failing to pay employee taxes BY ROBERT E. KESSLER | robert.kessler@newsday.com
August 28, 2008
The head of a New Jersey carpentry company was charged yesterday with failing to pay $400,000 in Social Security and other benefit taxes for his employees on Long Island, according to officials.

Sidnei Santos, 35, of Newark, pleaded not guilty at his arraignment in U.S. District Court in Central Islip to a 14-count indictment charging him with failure to pay taxes for his employees between August 2002 and March 2006.

Although Santos' company, SMS Resistencia Carpentry, is based in Newark, most of its employees work in Suffolk, according to officials.

The case was the latest brought by the Criminal Investigation Division of the Internal Revenue Service in an ongoing crackdown on companies that fail to pay taxes for Long Island construction industry workers. Many of the workers in the cases are undocumented immigrants.



Carpentry union official Antonio Martinez, who was in the courtroom, said most of Santos' 60 employees are Brazilian nationals who are skilled in framing the wooden shells of new homes. Martinez's union, the Empire State Regional Council of Carpenters, has been crusading against hiring carpenters who receive less than the union minimum.

Martinez said that Santos' carpenters, who have worked on many housing projects in Suffolk, typically earn $12 an hour versus the union scale of $29, when fringe benefits are included.

"We want people to play by the rules," Martinez said, adding that not paying taxes deprives the government of money.

Magistrate Kathleen Tomlinson held Santos without bail pending further hearings because he is apparently in the country on a tourist visa.

Santos has been out on bail on a Suffolk indictment charging him with evading $171,000 in state taxes.

Santos' attorney, federal public defender Tracey Gaffey, declined to comment as did Assistant U.S. Attorney Charles Kelly.

As part of the IRS investigation, the head of another Long Island-based carpentry company was sentenced in April to six months in a federal halfway house for evading $400,000 in taxes by paying his workers, most of whom were also undocumented immigrants, off the books.




http://www.newsday.com/news/local/crime ... 5350.story

We need more brought up on charges.

IRS is one way to go.

apparently in the country on a tourist visa.

so on your vacation you have enough time to start a business.....Exactly how long is a tourist Visa

As part of the IRS investigation, the head of another Long Island-based carpentry company was sentenced in April to six months in a federal halfway house for evading $400,000 in taxes by paying his workers, most of whom were also undocumented immigrants, off the books.

Did they have to also pay the $400,000. in taxes or was that just written off? They should be liable for all taxes owed plus interest.

These stories should make MSM front page news. This would help show the pro-illegal aliens how much money is being lost by the government and let other companies see what happens when they get caught.

Okay...but what about the illegal alien workers...is ICE going to investigate and prosecute the owner for hiring them and then arrest the illegals too? There has to be COMPREHENSIVE IMMIGRATION ENFORCEMENT.