Tewksbury, Mass., Health Care Provider and Its CEO Permanently Enjoined Relating to Failure to Comply with Federal Employment Tax Requirements

A federal court in Boston issued a judgment against Excel Home Care Inc. in the amount of $473,510.76 for unpaid federal employment and unemployment taxes after its owner Diane E. Porter consented to the entry of an order of permanent injunction that prohibits her or anyone else from operating this Tewksbury, Mass., home health care provider. The order also provides that Ms. Porter is prohibited from owning, managing or controlling any entity that utilizes other individuals to perform services as an employee or a consultant.

On May 26, 2009, the Honorable Patti B. Saris issued a preliminary injunction order requiring Excel Home Care and Ms. Porter to timely file all employment and unemployment tax returns for Excel Home Care with the IRS, deposit all federal employment and unemployment taxes in an appropriate federal depository bank in accordance with federal deposit regulations, and refrain from making any disbursements or assigning any property out of the ordinary course of business from the date of payment of wages until the amounts which are required to be withheld from the payment of those wages were paid to the IRS. This preliminary injunction order was issued in response to the April 15, 2009, suit filed by the Justice Department, alleging that Excel Home Care Inc. had failed to file employment taxes for the quarters ending December 31, 2005, through March 31, 2008. It was further alleged that, Excel Home Care had failed to pay unemployment taxes for the years 2003 and 2005-2007.

John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division, thanked Lisa L. Bellamy, the Justice Department trial attorney who handled the case, and Supervisory Revenue Office Domenic Caliri who conducted the investigation.

In the past decade, the Justice Department’s Tax Division has obtained more than 430 injunctions against tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department’s Web site.