The owner of a software firm in Carnegie, PA, Amarender Tiparthy, was sentenced in U.S. District Court to two years in prison for payroll tax evasion.
Tiparthy pled guilty to collecting payroll taxes, including Medicare, Medicaid and Social Security from his employees from 2010 to 2013 totaling over $2.2 million but didn’t turn any of the money over to the IRS.
While Tiparthy’s attorney argued that he paid some of the money back, U.S. Attorney Mary Houghton disputed that, saying that Tiparthy had been the subject of IRS collection efforts for 15 years, and during that time built a $500,000 house which is considered lavish in Western Pennsylvania. Tiparthy’s attorney also requested that he be given home detention, which was rejected by the judge, as attorney Houghton stated, “The $2.2 million dollar back taxes case makes this the largest payroll taxes case in the district and that by giving Tiparthy probation would send a horrible message to other tax cheats.”
In addition to prison time, the judge ordered Tiparthy to pay the full amount owed to the IRS.