On December 7, 2015, David W. Anderson was sentenced by U.S. District Judge Diane J. Humetewa to six months in prison and 180 days of home confinement. On May 7, 2015, Anderson pleaded guilty to one count of Willful Failure to Collect or Pay Over Tax. Prior to sentencing, Anderson paid $494,449.41 in restitution to the Internal Revenue Service.
According to his plea agreement, the defendant owned and operated Anderson Enterprises, a partnership doing business as Anderson Landscape & Irrigation. The defendant’s business had approximately 300 to 400 employees.
Beginning in the last quarter of 1999, the defendant stopped filing federal payroll tax returns, and stopped making federal tax deposits in the first quarter of 2000. The defendant continued to file his Arizona Quarterly Withholding Tax Returns with the Arizona Department of Revenue and remitted the taxes when they were due, but failed to meet his concurrent federal obligations. Instead of paying the business’s federal payroll taxes, the defendant utilized the funds to make a number of personal purchases including several properties, home improvement projects, and various vehicles and vacations.
Also according to his plea agreement, the tax loss associated with defendant’s conduct with respect to employment taxes, including both the employees’ share of tax and the business’s matching amount, exclusive of interest due and any subsequent payments made and credited to the defendant’s account, was $494,449.41.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation.