A West Virginia man has been sentenced to three years in federal prison for failing to fulfill employment tax obligations and obstructing IRS collections, according to a recent announcement by the Department of Justice.
Court documents reveal that Christopher Jason Smyth operated an ambulance service called Stat EMS LLC in Pineville from 2012 until mid-2017. Prior to establishing Stat EMS, Smyth managed another ambulance business that racked up millions in employment tax liabilities before filing for bankruptcy. He then set up Stat EMS under a provisional owner while maintaining full operational control of the company.
As the operator of Stat EMS, Smyth was responsible for withholding key taxes, including Social Security, Medicare, and income taxes from employee wages, and ensuring these funds were remitted to the IRS. However, he neglected to pay these taxes for several years, instead using company funds for personal expenses and transferring money to businesses owned by friends and family. The IRS later determined that Stat EMS incurred approximately $3.3 million in unpaid taxes.
When the IRS assessed these unpaid taxes against Smyth and attempted to collect, he engaged in misleading tactics to evade payment. Reports indicate he deceived an IRS revenue officer by falsely claiming he had no personal bank accounts, despite regularly depositing paychecks into an account under a relative’s name. Additionally, he denied involvement in other businesses, despite having signature authority over their accounts.
Following his conviction, Smyth received a three-year prison sentence, serving as a stark reminder of the severe penalties for failing to meet tax obligations and obstructing IRS enforcement efforts.
