A Washington state couple, dentist Dr. James Hood, and his wife, Karen Hood were found in contempt from a Federal Court for violating a previous permanent injunction requiring them to file payroll tax returns and pay payroll taxes in a timely manner.
The Court previously entered a permanent injunction against the Hoods and their entities to comply with federal employment laws.
The Court found the Hoods in contempt for showing a consistent pattern of disregarding their tax obligations by making incomplete employment tax payments, making dishonored payments and missing deadlines. The Hood’s failed to pay their taxes for the fourth quarter 2016 by the end of January 2017. They also found that the Hoods attempt to make payroll tax payments were dishonored due to insufficient funds in their accounts.
As a result, the Court ordered the Hoods to close their dental business, cease operating as employers and barred them from opening any new businesses where they would serve as employers.