Richard Spencer, of Canton, Ohio was indicted by a federal court of 15 counts for failure to account for, collect and pay employment taxes.
Spencer, owner of RS Sewing, which manufactures American flags, was responsible for the company’s financial operations. For W-2 employees, Spencer withheld federal income, Social Security and Medicare taxes but failed to turn the money over to the IRS. The indictment also alleges that Spencer misclassified a portion of his employees as independent contractors and he also withheld employment taxes. It was found in an audit in 2011 that Spencer improperly classified the workers and was fined as a result, but he continued to do the same thing.
According to the indictment, the amount of money Spencer collected but failed to pay the IRS, was over $162,000. If convicted, the sentence will be determined by the court after reviewing factors such as the defendant’s prior criminal record, his role in the office and characteristics of the violation unique to his case. A trial date is pending.