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Lizbel Sanchez, of Brookfield, was sentenced on Tuesday, Oct. 18, to two years of probation and ordered to pay a $400,000 fine, according to Vanessa Roberts Avery, United States attorney for the District of Connecticut.
Sanchez pleaded guilty on April 14 to one count of willful failure to collect or pay over taxes, Avery reported.
Sanchez is a minority owner of Danbury Food Corp., which operates a C-Town grocery store in Danbury, the US Attorney's Office said.
She was responsible for the company's accounting and financial records and for collecting and paying over certain federal taxes from employees, along with ensuring that the company paid its own share of FICA and its Federal Unemployment Tax, according to the report.
"An investigation revealed that, Sanchez and DFC paid several employees in cash and failed to collect, account for and pay over the federal income taxes and FICA taxes associated with the cash wages," the US Attorney's Office said. "Sanchez also failed to account for and pay over DFC’s share of FICA taxes and its FUTA obligation based on the taxable wages of those employees that DFC paid in cash."
The situation resulted in a loss of $408,121.85 to the IRS for the 2016 tax year, which Sanchez has since paid in restitution, the US Attorney's Office said.
Avery said Sanchez also acknowledged similar conduct for the company in 2017 and 2018.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division.
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