Former owners of Ann Arbor software company accused of failing to pay more than $600,000 in taxes
A couple that owned an Ann Arbor-based software company is accused of failing to pay more than $600,000 in employment taxes to the IRS over a 12-year period.
Anthony Kumar Chaudhuri, 55, and Margaret Ann Chaudhuri, 60, of Naples, Florida, were indicted Monday on federal charges of conspiracy to defraud the United States, failure to pay employment taxes and obstructing Internal Revenue laws.
It's unclear when they will make an initial appearance in federal court in Detroit. The Chaudhuris could not be reached for comment this morning.
According to the 13-count indictment, the couple owned Ariel Computing, a hospital inventory control software company. The business had several offices in Ann Arbor from 1994 to 2008, including on South Industrial Parkway, the indictment says, and employed between 3 and 10 people.
For roughly 12 years, beginning in March of 1996, the indictment alleges the couple withheld more than $880,000 in employment taxes, but failed to pay more than $600,000 of those taxes to the IRS. Instead of paying Federal Insurance Contribution Act taxes, the indictment says the couple spent the money on “business expenses, employee salaries and personal expenses.”
The indictment says W-2 forms were prepared for employees that falsely reported the taxes had been withheld and paid to the IRS.
In addition, the indictment alleges Anthony Chaudhuri failed to file individual federal income tax returns from 2004 to 2008.
Lee Higgins covers crime and courts for AnnArbor.com. He can be reached by phone at (734) 623-2527 and email at leehiggins@annarbor.com.
Comments
Gordon
Wed, Aug 10, 2011 : 1:06 p.m.
First there is the charge of failure to comply with IRS regulations and then there is the charge of obstruction meaning the couple intended to do the deed of non-payment. Charges are about the business in operation. Is the business still owned and operating today? the comment about how the money was spent was in the IRS charges or given as defense statement? More to come.
DonBee
Wed, Aug 10, 2011 : 10:35 a.m.
Think! & Mr. Ed - Most businesses and business people are hardworking and honest. Most teachers are hardworking. Most policepersons are honest. But it only takes one headline to get people wondering and some people "diss-ing" a whole class of people. Bad folks should go to jail, everyone should pay their taxes.
RJA
Wed, Aug 10, 2011 : 6:05 a.m.
I smell big time trouble for this couple.
glacialerratic
Tue, Aug 9, 2011 : 9:54 p.m.
Job creators and entrepreneurs making the economy grow and providing opportunities for... or is this just another episode of the treason of the business class?
John B.
Wed, Aug 10, 2011 : 6:03 p.m.
It's the latter. The money was effectively stolen from the employees, actually.
Think!
Tue, Aug 9, 2011 : 6:01 p.m.
But if we force businesses to pay taxes, they won't create jobs.
Mike
Wed, Aug 10, 2011 : 12:07 p.m.
Business owners pay more taxes than you'll ever pay. Under the MBT they paid taxes even if they didn't make any money. Tax away, then sit by your mailbox and wIt for your unemployment or wefare check until the government runs out of other peoples money. We should be encouraging businesses instead of villifying them.
Gorc
Tue, Aug 9, 2011 : 9:34 p.m.
Finally, liberal humor I can laugh at. Think! you made me laugh, thanks.
Mr. Ed
Tue, Aug 9, 2011 : 5:05 p.m.
This can't be true, a business not paying taxes.
Joe Hood
Tue, Aug 9, 2011 : 5:49 p.m.
You mean a business not paying the first time and then the second time (in Michigan)?
trs80
Tue, Aug 9, 2011 : 5:04 p.m.
Land of opportunity. God bless the U S A.
Dot
Tue, Aug 9, 2011 : 4:48 p.m.
This one is so blatant ... never ceases to amaze me what some people think they will get away with.