Sgt. Bluff, IA business owner pleads guilty to tax evasion
SERGEANT BLUFF, Iowa (KTIV) - The owner of a Sergeant Bluff, Iowa construction firm has pled guilty to tax evasion in federal court.
According to the United States Attorney’s Office, Kevin Alexander, 62, of Sioux City, pled guilty on Nov. 16, to tax evasion for evading payment of his company’s employment taxes.
Court documents state Alexander owned K&L Construction, Inc., a landscaping and construction company. As the sole shareholder and president, Alexander was responsible for filing quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from employees’ wages.
From the second quarter of 2014 through the first quarter of 2017, K&L Construction paid approximately $3.8 million in wages to its employees and withheld approximately $1 million in payroll taxes, but the company did not pay over any of these withholdings to the IRS.
During IRS collection proceedings, Alexander accepted responsibility for paying K&L Construction’s outstanding tax balance. Alexander, however, submitted a false form to the IRS that concealed some of his assets. As part of his plea agreement, Alexander admitted that he submitted the false form for the purpose of concealing assets and evading payment of K&L Construction’s outstanding payroll tax liability.
Alexander remains in custody of the United States Marshal pending sentencing. He faces a maximum sentence of five years in prison. Alexander also faces a period of supervised release, restitution, and monetary penalties.
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