Informer: FICA scofflaws face fines, possibility of prison

Published 1:19 pm Monday, March 26, 2012

Can an employer be fined for not turning in a worker’s Social Security contribution?

Yes, and more.

Section 7202 of U.S. Code Title 26 says any person who “willfully fails” to collect, account for or pay the tax — usually listed as FICA on pay stubs — is “guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, together with the costs of prosecution.”

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Other provisions of the tax code can increase that fine to “at least $250,000 for individuals and at least $500,000 for organizations,” according to the U.S. Justice Department’s Criminal Tax Manual.

Additionally, under Section 6672 of the same title, the Internal Revenue Service can hold the employer “liable to a penalty equal to the total amount of the tax evaded.”

Online: www.justice.gov; www.irs.gov/irm/part5/irm_05-017-007.html.

Road extension to open in June

Why hasn’t East McNeese Street between La. 14 and La. 397 been opened?

Because the parish has yet to complete its part of the extension — a two-mile length on the eastern end of the three-mile stretch.

In a joint news release issued last July, Lake Charles and Calcasieu Parish officials announced that the city had completed the one-third of the road that it had agreed to do. When the parish finishes its part, including a traffic roundabout, the road will open, officials said.

Bryan Beam, Calcasieu Parish administrator, said last week that the East McNeese Street extension should open in June, “barring delays that might occur due to significant rain events.”

The parish is also working on an extension of Corbina Road from the east-west section of La. 14 north to East Prien Lake Road. The work will reportedly be done by mid-2013. The aforementioned traffic circle will be where Corbina meets East McNeese.

In the joint news release, city and parish officials referred to the extensions as “visionary infrastructure projects,” and Mayor Randy Roach called the East McNeese Street addition “a new corridor of growth and economic development.”

Online: www.cityoflakecharles.com; www.cppj.net.

Traveling teachers used personal day

What type of leave did educators take when they traveled to Baton Rouge to protest the changes Gov. Bobby Jindal wants to make?

In a story published last week, Charlotte Gallemore, Calcasieu Parish administrative director of middle schools, told the American Press that the teachers had taken a personal day to travel to the Capitol.

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The Informer answers questions from readers each Sunday, Monday and Wednesday. It is researched and written by Andrew Perzo, an American Press staff writer. To ask a question, call 494-4098, press 5 and leave voice mail, or email informer@americanpress.com””

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