Tax Authorities Raid Business for Non-Withholding | AccountingWEB

Tax Authorities Raid Business for Non-Withholding

About a dozen agents of the California Franchise Tax Board, armed with guns and accompanied by local police, raided the office and personal home of Nick and Trina Vu Jesson, the owners of No Time Delay Electronics, a Huntington Beach, California company. The company reportedly has chosen not to withhold taxes from workers' paychecks.

The company, also known as N.T.D. Electronics, was one of several businesses identified last November by The New York Times as participating in a tax protest movement. The group contends that no law requires payments of taxes by Americans working for companies owned by Americans. This group differs from many other tax protestation groups because it involves not individuals, but business owners, who refuse to withhold taxes from employee wages and who refuse to make payments on behalf of their employees to taxing authorities.

Tax authorities reportedly ordered everyone at the business site to evacuate the premises and presented the Jessons with a warrant maintaining that a felony had been committed and authorizing the seizure of business records, including computer hard drives.

Tax agents on the scene declined to comment.

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