United States Attorney Richard G. Frohling announced that on March 25, 2022, Paul R. Vanderlinden (age: 42) of Appleton, Wisconsin pleaded guilty in federal court in Green Bay to deliberately filed a false tax return and failed to honestly account for and pay payroll taxes to the Internal Revenue Service.
According to court documents, Vanderlinden, as the owner and operator of Muncheez Pizzeria in Appleton, Wisconsin, withdrew approximately $800,000 from his business’s revenue between 2012 and 2016. Large cash deposits were made into the account. Vanderlinden’s personal bank during this period. Vanderlinden failed to include this income on his tax returns and fraudulently underreported his gross receipts by at least $130,000 for each tax year.
Vanderlinden gave its employees the option of being “paid cash without tax deduction, or by check with tax deduction”, and used much of the skimmed earnings to pay its employees “under the table”. Federal law requires employers to collect payroll taxes. Vanderlinden deliberately failed to withhold and pay approximately $88,000 in payroll taxes between 2012 and 2016, and he filed employer tax returns that contained false statements regarding wages paid to his employees.
“This case reflects the strong commitment of the Department of Justice and our federal law enforcement partners to investigate and prosecute those who seek to abuse our tax laws,” U.S. Attorney Frohling said. “This type of fraud not only undermines the rule of law, but also unfairly disadvantages individuals and businesses who act upfront and honest in the marketplace.”
“Business owners have a responsibility to withhold income taxes from their employees and then remit them to the Internal Revenue Service,” said IRS Criminal Investigations Special Agent Justin Campbell of the office. outside of Chicago. “Failure to pay withholding taxes is a serious offense. It results in loss of tax revenue for the United States government and loss of future Social Security or Medicare benefits for employees.”
Vanderlinden will be sentenced on July 7, 2022 before U.S. Senior District Judge William C. Griesbach.
This investigation was conducted by special agents from the Criminal Investigations Division of the Internal Revenue Service. He is being prosecuted by Assistant US Attorney Farris Martini.
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