O.C. Businessman Sentenced to Prison for Failing to File Tax Ret - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

O.C. Businessman Sentenced to Prison for Failing to File Tax Returns

Posted:

BALTIMORE- A U.S. District Court judge on Friday sentenced an Ocean City business owner to 10 months in prison, followed by one year of supervised release, for failing to file individual income tax returns and failing to report employment tax withholdings.

According to his guilty plea, 43-year-old Patrick McLaughlin operated several concession businesses in Ocean City including: photo companies Sunbeach Studios, Ltd. and United Beach Photo, Inc.; Arctic Inventions, Ltd., which operated a fleet of retail ice cream trucks; and 85 N Sunny, which provided  beach equipment rentals to tourists.
 
Court records show that McLaughlin failed to file corporate tax returns for Sunbeach, Arctic and United for tax years 2003 to 2009.  As a result, McLaughlin failed to pay $10,239 in corporate taxes for United alone,  from 2007 to 2009.
 
Federal prosecutors said McLaughlin also did not file individual income tax returns for tax years 2005 to 2009, thus failing to pay a total of $151,114 in federal income taxes earned from his businesses. According to court documents, when in December 2010, IRS agents notified McLaughlin that he was under criminal investigation, McLaughlin submitted corporate and individual income tax returns for the missing years thereafter.

Court records show that from 2006 to 2008, McLaughlin also failed to report and remit Social Security and Medicare taxes (employment taxes) withheld from his employees' wages, resulting in a total employment tax loss to the government of $135,348.46. 

Prosecutors also noted that similarly, in 2007 and 2008, McLaughlin and 85 N Sunny withheld more than $8,000 and $12,000 respectively in employment taxes, which he had a duty to pay, along with an additional $21,259. Prosecutors said that instead, McLaughlin did not report any withholdings and made only a one-time payment of $230.

As a result of McLaughlin's failure to pay corporate, individual and employment taxes, the total tax loss to the government is $296,701.46, prosecutors said.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Wicomico County Sheriff's Facebook Post Questioned

    Wicomico County Sheriff's Facebook Post Under Fire

    10/17/2017 17:44:00 -04:002017-10-17 21:44:00 GMT
    Tuesday, October 17 2017 6:30 PM EDT2017-10-17 22:30:06 GMT
    SALISBURY, Md. - A now-deleted Facebook post from Wicomico County Sheriff Mike Lewis is causing controversy in the county.Lewis' post referred to protesters outside a Ravens Game on Sunday. The protesters were demonstrating next to a Maryland State PolicMore
    SALISBURY, Md. - A now-deleted Facebook post from Wicomico County Sheriff Mike Lewis is causing controversy in the county.Lewis' post referred to protesters outside a Ravens Game on Sunday. The protesters were demonstrating next to a Maryland State PolicMore
  • 18 Inmates Charged in Deadly Del. Prison Uprising

    16 Inmates Charged With First-degree Murder in Del. Prison Uprising

    10/17/2017 10:14:00 -04:002017-10-17 14:14:00 GMT
    Tuesday, October 17 2017 2:25 PM EDT2017-10-17 18:25:59 GMT
    Sixteen inmates have been charged with first-degree murder in connection with a deadly uprising that occurred in early February at the James T. Vaughn Correctional Center in Smyrna.More
    Sixteen inmates have been charged with first-degree murder in connection with a deadly uprising that occurred in early February at the James T. Vaughn Correctional Center in Smyrna. Two other inmates were also charged in connection with the incident.More
  • Arrest Made in Seaford Animal Cruelty Case

    Arrest Made in Seaford Animal Cruelty Case

    10/17/2017 15:28:00 -04:002017-10-17 19:28:00 GMT
    Tuesday, October 17 2017 3:50 PM EDT2017-10-17 19:50:18 GMT
    A Seaford man has been arrested on animal cruelty charges.More
    A Seaford, Del. man has been arrested on 449 charges, including felony animal cruelty, according to the state's Office of Animal Welfare.More
  • Most Popular VideosMost Popular VideosMore>>

  • 18 Inmates Charged in Deadly Del. Prison Uprising

    18 Inmates Charged in Deadly Del. Prison Uprising

    Sixteen inmates have been charged with first-degree murder in connection with a deadly uprising that occurred in early February at the James T. Vaughn Correctional Center in Smyrna. Two other inmates were also charged in connection with the incident on Feb. 1-2 that resulted in the murder of Lt. Steven Floyd, injuries to Correctional Officers Winslow Smith and Joshua Wilkinson, and the kidnapping of counselor Patricia May.

    More

    Sixteen inmates have been charged with first-degree murder in connection with a deadly uprising that occurred in early February at the James T. Vaughn Correctional Center in Smyrna. Two other inmates were also charged in connection with the incident on Feb. 1-2 that resulted in the murder of Lt. Steven Floyd, injuries to Correctional Officers Winslow Smith and Joshua Wilkinson, and the kidnapping of counselor Patricia May.

    More
  • Wicomico County Sheriff's Facebook Post Questioned

    Wicomico County Sheriff's Facebook Post Questioned

    A now-deleted Facebook post from Wicomico County Sheriff Mike Lewis is causing controversy in the county. Lewis' post referred to protesters outside a Ravens Game on Sunday. The protesters were demonstrating next to a Maryland State Police trooper. In the post, Lewis referred to the protesters as "fist wielding, black power activists" who decried law enforcement officers' work.

    More

    A now-deleted Facebook post from Wicomico County Sheriff Mike Lewis is causing controversy in the county. Lewis' post referred to protesters outside a Ravens Game on Sunday. The protesters were demonstrating next to a Maryland State Police trooper. In the post, Lewis referred to the protesters as "fist wielding, black power activists" who decried law enforcement officers' work.

    More
  • As Neglected Animals Recover, the Owner's Family Speaks Out

    As Neglected Animals Recover, the Owner's Family Speaks Out

    The 31 dogs rescued from a home in Seaford are on the mend, officials say.

    "After our team worked to shave them down, we saw what we expected: that they were severely emaciated," says Brandywine Valley SPCA Georgetown Campus Director Walter Fenstermacher. "But what we didn't expect was how warm their personalities were and how forthcoming they were and wanted to be pet and loved by our staff members."

    More

    The 31 dogs rescued from a home in Seaford are on the mend, officials say.

    "After our team worked to shave them down, we saw what we expected: that they were severely emaciated," says Brandywine Valley SPCA Georgetown Campus Director Walter Fenstermacher. "But what we didn't expect was how warm their personalities were and how forthcoming they were and wanted to be pet and loved by our staff members."

    More
Powered by Frankly

All content © Copyright 2000 - 2017 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices