- 9 -
the judgment against Mr. Kanz in exchange for Mr. Kanz’s promise
to cooperate and assist in any effort to reduce or eliminate
petitioners’ liabilities for the corporate employment taxes due
the IRS. Both Mr. Grothues and Mr. Kanz contemplated the
simultaneous execution of the settlement upon which the agreed
judgment was based and the collateral agreement.
At the time petitioners’ 1993, 1994, and 1995 tax years were
under examination, Mr. Kanz denied he had ever embezzled funds
from petitioners, SWAS, or petitioners’ corporations. On January
25, 2002, Mr. Kanz admitted he had misappropriated money from the
SWAS bank accounts, but he denied he had misappropriated as much
as the amount stated in the agreed judgment. On February 12,
2002, Mr. Kanz stated he did not deny any of the findings in the
agreed judgment and that he was unable to dispute any of the
findings in the agreed judgment insofar as they related to his
actions. Mr. Kanz has not reported the alleged embezzlement
income on any returns he has filed since 1984.
To date, Mr. Kanz has not cooperated with or assisted
petitioners, petitioners’ corporations, or SWAS in reducing or
eliminating petitioners’ liabilities for the corporate employment
taxes due the IRS. To date, neither petitioners, petitioners’
corporations, nor SWAS have taken any steps to recover from Mr.
Kanz the amounts set forth in the agreed judgement.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011