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Feds indict Harrisburg business owner for tax evasion - abc27 WHTM

Feds indict Harrisburg business owner for tax evasion

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HARRISBURG, Pa. (WHTM) -

Federal authorities have announced criminal charges against the owner of a Harrisburg labor supply businesses.

Howard Ginting, 29, of Harrisburg, is accused of tax evasion and failing to pay withholding taxes on income of approximately $1 million in a 17-count indictment returned by a federal grand jury this week.

According to U.S. Attorney Peter Smith, Ginting was the sole owner of Ginting Enterprises, which allegedly supplied day laborers to businesses in central and northeastern Pennsylvania on an as-needed basis.

Ginting, who was required to withhold Federal Insurance Contributions Act (FICA) taxes from employee wages on a quarterly basis, paid wages totaling about $851,553 from Oct. 2006 to Feb. 2008, but falsely reported to the IRS that he paid $68,549 in wages and thereby underpaid Social Security and Medicare taxes by approximately $119,799, Smith said.

After he shut down Ginting Enterprises in Feb. 2008, Ginting operated his same labor supply business under the name Trojan Services, Inc. and failed to report to the IRS all wages - approximately $638,477 - paid to his employees, Smith said.

Ginting faces a maximum penalty of 75 years in prison, a fine of over $300,000 and significant tax penalties.

 

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