FOREST CITY, Iowa (AP) - A Forest City businessman has been sentenced to 13 months in federal prison for failing to pay employment taxes.
A news release from the U.S. Attorney’s Office in Cedar Rapids says 60-year-old Darrell Smith was also ordered to serve two years of supervised release after his prison term ends.
Prosecutors say Smith failed in his role as president and partner of investment firm Energae to pay more than $500,000 in employment taxes for employees of Hopkinton ethanol plant Permeate Refining.
Prosecutors say that after Smith discovered a subordinate employee had made some payments to the IRS, Smith stopped the employee from making further payments.
Smith pleaded guilty in June to one count of failing to pay employment taxes.
Please read our comment policy before commenting.