SALT LAKE CITY- Daniel Frey, 46, of Ogden, has been sentenced to one year and one day in federal prison after pleading guilty to failure to pay or account for trust fund taxes related to his four Ogden-area health care businesses.
Pursuant to a plea agreement, Frey owns and operates four businesses in the Ogden area. These companies were Burch Creek Homecare and Hospice LLC, which closed in 2015, Scrub World, which closed in 2018, Medical Billing Advantage LLC, and Country Niche LLC, which closed in 2020.
Frey was responsible for handling corporate payroll, including issuing payroll checks to employees and withholding employment taxes under the Federal Insurance Contributions Act (FICA).
As the responsible party for each of these companies, Fry was required to collect, calculate and pay “trust tax” taxes to the Internal Revenue Service on a quarterly basis. Fry was also responsible for paying the employer’s portion of the trust fund taxes to the IRS.
From January 2013 through December 2016, Frey deducted employee payroll and collected corporate trust fund taxes, as required. He also reported the IRS to withhold trust fund taxes for his company.
However, at the same time, he did not pay any of the trust fund taxes that companies owe to the IRS. Frey also failed to pay the IRS the employer’s share of the trust tax owed on his business. In total, from January 2013 through December 2016, they owed and intentionally failed to pay $568,590 to the corporate tax authority.
US Attorney Andrea T. Martinez: “Failure to pay taxes is a serious crime.” “This case is evidence that we will hold employers accountable if they violate their duty to pay employment taxes to the United States government.”
“This investigation and prosecution illustrates the toll that willful violations of US tax laws cause not only to the system, but also to the ordinary taxpayer,” said Albert Childress, the IRS special agent in charge of criminal investigations. “Mr. Frey’s actions hurt the taxpayers from whom withholding was taken but never paid, and they harm the competitors who complied with the law. The task of the IRS criminal investigation is to enforce the tax laws of this country to instill confidence and maintain a fair tax system for all.”
This was announced by US Attorney General Andrea T. Martinez is from Utah County. The case was prosecuted by the United States Attorneys General in the United States Attorney’s Office for the Utah District. The case was investigated by the IRS-Criminal Investigation.