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.

You may like these other stories...

Amidst the dark clouds hovering over the IRS this year—ranging from the lingering Tea Party scandal to other improprieties to damaging budget cuts—at least there's a ray of sunshine in a new report from the...
SEC, Big Four Chinese affiliates make progress in talks over audit documentsMichael Rapoport of the Wall Street Journal reported that the US Securities and Exchange Commission (SEC) and the Chinese affiliates of the Big Four...
Koskinen warns filing season could be most complicated yetImplementation of the Foreign Account Tax Compliance Act and the Affordable Care Act, combined with a tight budget and the possibility of Congress passing a late...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.