SALT Report 1283 – The owner of two businesses in Twisp, Washington pled guilty last week to felony theft of sales tax. Larry Dewayne Smith, 60, admitted in court that he failed to remit nearly $14,000 in sales tax that he collected from his customers between January 2008 and June 2010.
The Department uncovered the offense during an audit of the business which also revealed that Mr. Smith had been operating for several years without a business license, which is a violation of state law. The charges were filed by the Economic Crime Unit of the Attorney General’s Office at the request of the Washington State Department of Revenue. Mr. Smith will be sentenced March 19, 2012.
Sales taxes are trust funds collected by businesses from customers on behalf of state and local governments. Failure to report or remit theses taxes is a felony and if convicted, violators will be subject to a maximum penalty of $20,000 and 10 years in prison.
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