Construction Firm Owner Sentenced for Employment Tax Evasion

An Iowa man was sentenced today to two years in prison for evading payment of employment taxes owed by his company.

According to court documents and statements made in court, Kevin Alexander of Sioux City owned K&L Construction, Inc. (K&L), a landscaping and construction company. Alexander was responsible for filing quarterly employment tax returns and collecting and paying to the IRS taxes withheld from employees’ wages. Between 2014 and 2017, K&L paid approximately $3.8 million in wages to its employees, of which approximately $1 million in income and Social Security and Medicare taxes was withheld. Alexander did not pay those withholdings over to the IRS. When the IRS attempted to collect K&L’s unpaid employment taxes, Alexander sought to conceal his income by submitting a form to the IRS concealing the full amount of K&L’s available assets.

In addition to the term of imprisonment, U.S. District Chief Judge Leonard T. Strand ordered Alexander to serve two years of supervised release and to pay approximately $1.7 million in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Timothy T. Duax for the Northern District of Iowa made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Ron Timmons for the Northern District of Iowa prosecuted the case.