SALT LAKE CITY – A federal grand jury returned an indictment Wednesday afternoon charging an Ogden, Utah, business owner, who owned and operated four healthcare related limited liability companies, with 27 counts of failing to pay over trust fund taxes totaling $146,856 to the IRS, between 2014 and 2016.
According to the indictment, Daniel Fry, who owned and operated four limited liability companies, including Burch Creek Homecare and Hospice LLC, Medical Billing Advantage LLC, Scrub World, and Country Niche LLC, caused trust fund taxes to be withheld from the wages paid to the employees of each of these businesses, and that Fry failed to pay over to the IRS all of the taxes owing to the United States on behalf of the employees of these businesses.
The indictment alleges that employers are required to withhold, account for, and pay over to the IRS, a variety of taxes from employee wages, including federal income taxes and FICA taxes- which include Medicare and Social Security taxes. These taxes are referred to as “trust fund taxes” because employers are required to hold them in trust for their employees and pay them over to the IRS.
Fry faces up to five years in federal prison if convicted of failure to pay over trust fund taxes. The case is being investigated by IRS Criminal Investigation.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty beyond a reasonable doubt in a court of law.
A summons has been issued for Fry to appear in federal court. This case is being prosecuted by the U.S. Attorney’s Office in Utah.